Kaiser Industries Has Bonds on the Market Making Annual Payments

Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a current price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate?

A) 8.93 percent
B) 8.46 percent
C) 9.01 percent
D) 9.32 percent
E) 8.78 percent