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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 bank CD that pays

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

A bank CD that pays 9.15 percent compounded semiannually

A bank CD that pays 9.00 percent compounded monthly

A bank CD that pays 8.85 percent interest compounded daily

A bank CD that pays 9.10 percent compounded quarterly

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