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16. You have the option to purchase two bonds with the same maturity date, annual coupon rate, credit rating and price. The only difference is

16. You have the option to purchase two
bonds with the same maturity date, annual
coupon rate, credit rating and price. The only
difference is Bond ABC compounds monthly
and Bond XYZ compounds quarterly. Which
bond is a better deal for you as an investor?*
They are the same.
Bond XYZ
Bond ABC
Not enough information to decide

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