The Windjammer Co. bonds are currently selling for $1,003.17. These bonds mature in three years, pay interest annually, and have a yield-to-maturity of 6.63%. What is the coupon rate?

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The coupon rate can be found by setting up the bond pricing formula, where the price of the bond equals the present value of the coupon payments plus the present value of the face value. Given the bond's price ($1,003.17), yield-to-maturity (6.63%), and maturity (3 years), we can solve for the coupon payment. The correct coupon rate results in a bond price closest to $1,003.17 when plugged into the formula. Without doing the exact math here, understanding the relationship between bond price, yield, and coupon rate is key. A bond priced above par (face value) indicates its coupon rate is higher than the yield-to-maturity. Among the given options, 6.75% is the only rate higher than the yield-to-maturity of 6.63%, making it the correct choice.