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.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Which security has higher effective annual interest rate
Reference No:- TGS0557393

Now Priced at $5 (50% Discount)

Recommended (91%)

Rated (4.3/5)