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20.Which one of the following has the lowest effective annual rate? a. 6 percent compounded annually b. 6 percent compounded semiannually c. 6 percent compounded

20.Which one of the following has the lowest effective annual rate?

a. 6 percent compounded annually

b. 6 percent compounded semiannually

c. 6 percent compounded quarterly

d. 6 percent compounded daily

21.If the market interest rate falls, bond priceswill _____

.a.fall

b.remain unchanged

c.rised.

d. fluctuate violently

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