What is the current market risk premium implied by the following information about EEM Company's bonds, assuming that the market for the bonds is in equilibrium?

Par value: $1,000

Years to maturity: 20 years

Coupon rate: 8% paid semiannually

Current market price: $980

Current risk-free rate: 5%

Beta of the bond: 0.5

Select one:

a. 6.41%

b. 6.00%

c. 8.12%

d. 7.50%

e. 8.56%