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Calculate the effective annual interest rate for (1) A 3-month T-bill selling at $97,865 with par value $100,000. (2) An 8% coupon bond selling at

Calculate the effective annual interest rate for (1) A 3-month T-bill selling at $97,865 with par value $100,000. (2) An 8% coupon bond selling at par and paying coupons semiannually. Which security has a higher effective annual interest rate? Coupon bond or T-bill

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