Assume that as investment manager of your firm's pension plan (which is exempt from income taxes), you must choose between IBM bonds and AT&T preferred stock. The bonds have a $1,000 par value; they mature in 10 years; they pay $45 each 6 months; they are callable at IBM's option at a price of $1,080 after 5 years; and they sell at a price of $916.54 per bond. The preferred stock is a perpetuity; it pays a dividend of $2.25 each quarter; and it sells for $90 per share. What is the most likely effective annual rate of return (EAR) on the higher yielding security? O 11.23% O 10.00% O 11.54% O 10.38% 10