The DArcy World Headquarters has bonds on the market with 8 years left to maturity and face value of $1000. They make semi-annual coupon payments and are currently trading for $650. If they have a yield to maturity of 15.88%, what must be the annual coupon rate?

Select one:

a. About 6%

b. About 7%

c. About 8%

d. About 9%

e. None of the above.