On December 1, 2013, Koidern Inc.

(Koidern) will be making a $10,000,000 bond issue to public investors. The bond matures in ten years on November 30, 2023 and pays interest annually on November 30. The effective interest rate on December 1, 2013 is expected to be 7 percent. How much will Koidern receive in proceeds from its bond if the coupon rate on the bond is

a. 6 percent

b. 7 percent

c. 8 percent