On January 1, 1997, HomeSafe Cab Co

On January 1, 1997, HomeSafe Cab Co. will issue new bonds to finance its expansion plans. Currently outstanding 9%, January 1, 2010 HomeSafe bonds are selling for $1,067.91. If interest is
Paid semi-annually for both bonds, what must the coupon rate of the new bonds be in order for the
Issue to sell at par?

A) 4.00%
B) 4.21%
C) 7.72%
D) 7.99%
E) 8.13%