Question $22$

$5$ pts

Exam Question $5\mathrm{.}6)$ Which bank CD $($assume equal risk$)$ has the highest effective annual return $($EAR$)?$

a$.$ One that pays $5\mathrm{.}60$ percent daily $($on a $365-$day basis$)$

b$.$ One that pays $5\mathrm{.}63$ percent monthly.

c$.$ One that pays $5\mathrm{.}64$ percent quarterly.

d$.$ One that pays $5\mathrm{.}64$ percent semiannually.

e$.$ One that pays $5\mathrm{.}66$ percent annually.