You are given the following information about two 10 year bonds. Both bonds have face amount 100 and coupons payable semi-annually, with the next coupon due in 1/2-year.

Bond 1: Coupon rate 4% per year, price 87.8.

Bond 2: Coupon rate 12% per year, price 133.77.

Find the annual effective yield rate for a 10-year zero-coupon bond

2.2%

4.4%

4.7%

4.8%