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5 January, 10:01

The stated interest rate is the rate quoted in the bond contract used to calculate the cash payments for interest.

a. True

b. False

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Answers (1)
  1. 5 January, 11:42
    0
    That statement is true

    A stated interest rate is the return of investment that is not compounded by the interest accumulation throughout the years.

    In general, a stated interest rate will give us a lower amount of return compared to effective annual interest rate that compound the accumulation throughout the years,
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