Suppose the U.S. Treasury offers to sell you a bond for $547.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
a. 13.84%
b. 12.17%
c. 11.66%
d. 11.40%
e. 12.81%