Consider the following zero$-$coupon STRIPs prices $($all have $$100$ face value$)$:

Maturity $($Years$)$

Price

$0\mathrm{.}598$

$196$

$1\mathrm{.}594$

$292$

What is the yield on a $2-$year Treasury bond with a $5\%$ coupon? Assume the coupon is paid semi$-$annually, and that the yield is compounded semi$-$annually. Express the yield in annualized terms. Choose the closest answer.

Group of answer choices

$5\mathrm{.}13\%$

$4\mathrm{.}21\%$

$4\mathrm{.}00\%$

$3\mathrm{.}77\%$

$3\mathrm{.}29\%$