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Gabriele Enterprises has bonds on the market making annual payments, with 7 years to maturity, a par value of $1,000, and selling for $910. At

Gabriele Enterprises has bonds on the market making annual payments, with 7 years to maturity, a par value of $1,000, and selling for $910. At this price, the bonds yield 7.4 percent. What must the coupon rate be on the bonds?

  • 6.27%

  • 5.81%

  • 11.41%

  • 5.71%

  • 7.40%

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