A 5-year floating-rate security was issued on 1 January 2015. The coupon rate formula was 1-year LIBOR + 300 bps with a cap of 10%, a floor of 4% and annual reset. The 1-year LIBOR rate on 1 January of each year of the securitys life is provided in the following table: Year 1-year LIBOR 2015 3.5% 2016 4.0% 2017 3.0% 2018 2.0% 2019 1.5%During 2019, the payments owed by the issuer were based on a coupon rate closest to:

a.

4.5%.

b.

4.0%.

c.

5.0%.

d.

6.5%.

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