Question: Which security has a higher effective annual interest rate? a. A three-month T-bill with face value of $100,000 currently selling at $97,645. b. A coupon

Which security has a higher effective annual interest rate?
a. A three-month T-bill with of $100,000 currently selling at $97,645.
b. A bond selling at par and paying a 10% semiannually.

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