You observed the following two fixed-income securities in the market.

a. A 3-month T-bill selling at $97,645 with par value $100,000.

b. A coupon bond selling at par and paying a 10% coupon semiannually.

What is the yield to maturity (on a yearly basis) and the effective annual interest rate (also called the effective annual yield to maturity) for a and b? Which security has a higher effective annual interest rate?