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Which of these would have a higher effective annual interest rate (EAR)? A 3 month T-bill selling at $97,645 with a $100,000 par value; or
Which of these would have a higher effective annual interest rate (EAR)? A 3 month T-bill selling at $97,645 with a $100,000 par value; or a coupon bond selling at par and paying a 10% coupon semi-annually?
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