The discount rate on a T-Bill differs from the T-bill's Equivalent Annual Rate (EAR) because:

I. The discount yield is the return per dollar of face value and the EAR is a return per dollar originally invested. II. A 360-day year is used on the discount yield and the EAR uses 365 days. III. The discount yield is calculated without compounding, the EAR is calculated with compounding.

		I & III
		II & III
		I & II
		I only
		I, II & III