An investor is considering investing in a zero-coupon Treasury bond with a $100 par value. The choices are:

i) a three-month Treasury bond sold at $98.6

ii) a half-year Treasury bond sold at $97.24

iii) a one-year Treasury bond sold at $96.02

iv) a 30- year Treasury bond sold at $28.28. Based on the effective annual rate, which Treasury bond should the investor choose? What other determinants may affect the investors decision? Explain your answers.

Note: assume per-period (annual) compounding for investments<1 year (>1 year)