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A 90 day government bill was bought by an investor for a price of $ 95 per $ 100 nominal . After 30 days the

A 90 day government bill was bought by an investor for a price of $ 95 per $ 100 nominal . After 30 days the investor sold the bill to a second investor for $ 97.50 per $ 100 nominal. The second investor held the bill to maturity when it was redeemed a par.

Determine which investor obtained the highest ANNUAL EFFECTIVE RATE OF RETURN

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