The Building Company wants to issue a new 7-year bond. The proceeds raised will be used to build a new factory. The Building currently has an 8.50% coupon bond trading in the market that sells for $994. That bond makes semiannual payments and will mature in 7 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?

a. 8.41 percent

b. 8.75 percent

c. 8.50 percent

d. 8.62 percent

e. 8.87 percent