answer to each question. etioovri grade. Aqesions re le chice, select ONLY one 1. Which of the following bank accounts has the highest effective annual rate (EAR) of return? a. An account that pays 10% nominal interest with monthly compounding. b. An account that pays 9.35% nominal interest with annual compounding. C. An account that pays 9.8% nominal interest with daily (365-day) compounding. d. An account that pays 9.5% nominal interest with monthly compounding. 2. You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT? a. The present value of ORD must exceed the present value of DUE, but the future value of ORD may be less than the future value of DUE. b. The present value of DUE exceeds the present value of ORD, while the future value of DUE is less than the future value of ORD. c. The present value of ORD exceeds the present value of DUE, and the future value of ORD also exceeds the future value of DUE d. The present value of DUE exceeds the present value of ORD, and the future value of DUE also exceeds the future value of ORD. 3. You are given the following information: Bond A: YTM-12%, coupon rate = 10%. Bond B: YTM-790, coupon rate-10%. Bond C: YTNI-7%, coupon rate 796. Which of the following bonds is a discount bond? a. Bond A b. Bond B c. Bond C d. None of the bonds is a discount bond nt banks the hope of earning high interest. Below are quotations of 3