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A pure discount bond costs $ 9 9 0 , 0 0 0 today and pays $ 1 , 0 0 0 , 0 0

A pure discount bond costs $

990, 000

today and pays $

1, 000, 000

3

months.

)

What is the annualized continuously compounded interest rate?

)

What is the effective annual rate?

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