The Semi-Annual, 8% Coupon Bonds of Merriweather, Inc

The semi-annual, 8% coupon bonds of Merriweather, Inc. are selling at par. The effective annual rate of these bonds must be equal to:

A) 4%.
B) (1.04) 2 - 1.
C) 8%.
D) (1.08) 2 - 1.
E) (1.04 x 2) - 1.