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Discover how to calculate the Effective Annual Rate of Interest (EAR), also known as the Effective Annual Interest Rate. Understand the significance of EAR in finance and how it differs from nominal interest rates. Learn the formula for EAR and its application in comparing financial products. Additionally, we explore Bond Equivalent Yield (BEY) and its relevance to bond investments, providing a practical example of Effective Annual Yield in finance.

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