How do I approach this question?

Roo-Fus Inc. wants to issue a Eurobond to finance its international expansions. It can choose between two bank syndicates that are willing to back the Eurobond issue, with the following fee schedules: Westpac ANZ Principal 300985 300985 Maturity 10 years 10 years Syndication fee 2.22% 1.61% Interest rate p.a. 7% 3.24% Coupons per year 2 4 Roo-Fus Inc. is otherwise indifferent between the two banks, so it will choose the offer with the lowest effective annual interest rate for the first payment period. What is that effective annual interest rate? Select one: a. 0.03293 Ob. 0.07159 X c. 0.03240 d. 0.03787 O e. 0.02964 f. None of these answers is correct