On October 31, 2009, Simeon Builders Borrowed $16 Million Cash

On October 31, 2009, Simeon Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note. The loan was made by Star Finance Co. whose stated discount rate is 8%. Sky's effective interest rate on this loan is:

A) More than the stated discount rate of 8%.
B) Less than the stated discount rate of 8%.
C) Equal to the stated discount rate of 8%.
D) Unrelated to the stated discount rate of 8%.