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18 Suppose there is a financial security that promises to give you $2,000 ten years from today. All else constant, for a given nominal interest
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Suppose there is a financial security that promises to give you $2,000 ten years from today. All else constant, for a given nominal interest rate, a change from quarterly compounding to annual compounding will cause the current price of this security to 1) Remain the same 2) Increase 3) None of the answers in this list is correct. 4) Decrease 5) Either increase or decrease depending on the number of years until the money is to be received Step by Step Solution
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