Question: Which security has a higher effective annual interest rate? Group of answer choices A 6-month T-bill selling at $95,346 with a par value of $100,000

Which security has a higher effective annual interest rate?

Group of answer choices A 6-month T-bill selling at $95,346 with a par value of $100,000

A 1-year bond with a 5% annual coupon currently trading for $954.55

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

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

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