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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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