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An investor is considering two bonds: Bond 1 Bond 2 Maturity 5 years 5 years Rating AA C Yield 3.5% 3.5% Payment schedule annual quarterly
An investor is considering two bonds:
| Bond 1 | Bond 2 |
Maturity | 5 years | 5 years |
Rating | AA | C |
Yield | 3.5% | 3.5% |
Payment schedule | annual | quarterly |
What factors should the investor use to choose between the bonds?
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