You have just purchased a U.S. Treasury bond for $777.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate will you earn on this bond?

Select the correct answer.

a. 6.47%

b. 5.17%

c. 7.77%

d. 3.87%

e. 2.57%