Question: When comparing two investments with the same nominal rate, one with a 4-year term and semi-annual compounding and one with a 2-year term and quarterly

When comparing two investments with the same nominal rate, one with a 4-year term and semi-annual compounding and one with a 2-year term and quarterly compounding, the effective rate of the 4-year term instrument is ____ the effective rate of the 2-year term instrument.

A. the same as

B. higher than

C. lower than

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