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Which of the following investments has the highest effective annual return (EAR)? (Assume that all CDs are of equal risk.) A. a bank CD that

Which of the following investments has the highest effective annual return (EAR)? (Assume that all CDs are of equal risk.) A. a bank CD that pays 7.10 percent compounded monthly B. a bank CD that pays 7.25 percent compounded semiannually C. a bank CD that pays 7.30 percent annually D. a bank CD that pays 7.00 percent interest compounded daily

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