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1. Suppose you have a choice between two investments. One investment earns 11% compounded semi-annually, and another investment earns 11% compounded monthly. Based on your

1. Suppose you have a choice between two investments. One investment earns 11% compounded semi-annually, and another investment earns 11% compounded monthly. Based on your Effective Annual Rate (EAR) Calculation, are those 2 investments similar? If not, which one is better?

2. Calculate the Bond Equivalent Yield (BEY) for a bond with a par value of $1,000 purchased at a discount of $975, with 65 days to maturity.

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