Whitts BBQ Would Like to Issue Some 10-Year, Semiannual Coupon

Multiple Choice

Whitts BBQ would like to issue some 10-year, semiannual coupon bonds at par.Comparable bonds have a current yield of 9.16 percent, an effective annual yield of 9.68 percent, and a yield to maturity of 9.50 percent.What coupon rate should Whitts BBQ set on its bonds?

A) 9.00 percent
B) 9.16 percent
C) 9.50 percent
D) 9.68 percent
E) 10.00 percent