If There Are Two Bonds with a Simple Interest Rate

question 72

True/False

If there are two bonds with a simple interest rate yield of 9 percent, but one bond is compounded quarterly while the other bond is compounded monthly, the bond with quarterly compounding will have a higher effective annual yield. 

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Definitions:

Industrial Products Salesperson

A professional responsible for selling goods and services used in manufacturing or industrial processes.

Aluminum Cans

Lightweight, durable containers made from aluminum, commonly used for packaging beverages and food products because of their recyclability.

Account Representative

A professional responsible for managing and maintaining the relationship between a company and its clients or customers.

Sales Engineer

A professional who sells complex scientific and technological products or services, often requiring specialized knowledge.