Cold Boxes Corporation Has 100 Bonds Outstanding with a Maturity

Multiple Choice

Cold Boxes Corporation has 100 bonds outstanding with a maturity value of $1,000. The required rate of return on these bonds is currently 10 percent, and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. Which of the following is the annual coupon interest rate?

A) 8%
B) 6%
C) 4%
D) 2%
E) 0%