A newly issued bond has a coupon rate of $5$ percent and semiannual interest payments. The bonds are currently priced at par. The effective annual rate provided by these bonds must be:

Multiple Choice

$2\mathrm{.}5$ percent.

greater than $2\mathrm{.}5$ percent but less than $5$ percent.

$5$ percent.

greater than $5$ percent.

less than $2\mathrm{.}5$ percent.