Market Enterprises would like to issue bonds and needs to determine the approximate rate they would need to pay investors. A firm with similar risk recently issued bonds with the following current features a 5% coupon rate, 10 years until maturity, and a current price of $1,150. At what rate would Market Enterprises expect to issue their bonds, assuming annual interest payments?
A. 3.2%
B. 5.9%
C. 5%
D. 4.8%
Please explain solution in detail and what formula (if any) you are using to find answer.