1.4.7 12 Smith buys a 1000 Canada savings bond, with an issue date of November 1, paying interest at 11.25% per year. The bond can be cashed in anytime after January 1 of the following year, and it will pay simple interest during the first year of of the annual interest for every completed month since November 1. The gov- ernment allows purchasers to pay for their bonds as late as No- vember 9, with full interest still paid for November. Smith pays 1000 on November 9 and cashes in the bond on the following January 1. What is his equivalent annual effective rate of interest for his transaction?

4.7 Smith buys a 1000 Canada savings bond, with an issue date of November 1 , paying interest at 11.25% per year. The bond can be cashed in anytime after January 1 of the following year, and it will pay simple interest during the first year of 121 of the annual interest for every completed month since November 1 . The government allows purchasers to pay for their bonds as late as November 9, with full interest still paid for November. Smith pays 1000 on November 9 and cashes in the bond on the following January 1 . What is his equivalent annual effective rate of interest for his transaction? 4.7 Smith buys a 1000 Canada savings bond, with an issue date of November 1 , paying interest at 11.25% per year. The bond can be cashed in anytime after January 1 of the following year, and it will pay simple interest during the first year of 121 of the annual interest for every completed month since November 1 . The government allows purchasers to pay for their bonds as late as November 9, with full interest still paid for November. Smith pays 1000 on November 9 and cashes in the bond on the following January 1 . What is his equivalent annual effective rate of interest for his transaction