Which security has higher effective annual interest rate
Which security has a higher effective annual interest rate?
a.A three-month T-bill selling at $97,645 with par value $100,000.
b.A coupon bond selling at par and paying a 10% coupon semiannually.
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Which security has a higher effective annual interest rate? A three-month T-bill selling at $97,645 with par value $100,000.
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