A Newly Issued Bond Has a 7 Percent Coupon with Semiannual

A newly issued bond has a 7 percent coupon with semiannual interest payments.The bonds are currently priced at par value.The effective annual rate provided by these bonds must be:

A) 3.5 percent.
B) greater than 3.5 percent but less than 7 percent.
C) 7 percent.
D) greater than 7 percent.
E) Answer cannot be determined from the information provided.