Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is paid semiannually. Sykora received $490,222 for the bonds at issuance. The effective rate on these bonds is:

Select one:

a. 4%

b. 8%

c. None of these are correct.

d. 10%

e. 5%