4. Which security has a higher effective annual interest rate? a. A 3-month T-bill selling at $97,645

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4. Which security has a higher effective annual interest rate?

a. A 3-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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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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