Luna Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual yield to maturity is 7.0%, they pay interest semiannually, and they sell at a price of...

Luna Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual yield to maturity is 7.0%, they pay interest semiannually, and they sell at a price of $882.72. What is the bond's nominal coupon rate?

a. 2.75%

b. 3.00%