Ask Question
BusinessBusiness
25 August, 12:56

The market interest rate related to a bond is also called the

+4
Answers (1)
  1. 25 August, 13:11
    0
    effective interest rate

    Explanation:

    The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e. g. coupon rate).

    It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The market interest rate related to a bond is also called the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The term "opportunity cost" is best defined as: 1. the amount of money paid for an item. 2. the amount of money paid for an item, taking inflation into account. 3. the amount of money paid for an item, taking possible discounts into account. 4.
Answers (1)
Summit Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $30. There is no beginning inventory. Costs involved in production are: Direct materials $5.00 Direct labor 4.00 Variable manufacturing overhead 3.
Answers (1)
What would be the year 3 depreciation expense if the building was sold on august 1 of year 3?
Answers (1)
Anthony votes in favor of a bill which would prevent people above a certain level of income from being able to purchase subsidized housing.
Answers (1)
Which of the following represents the types of data commonly found in the Marketing department? a. Promotional data b. Payroll data c. Tax data d. Employee data
Answers (1)
New Questions in Business
Which statement describes the equity‑efficiency trade‑off? Government intervention can increase efficiency in a market. Actions intended to make economic outcomes fairer may cause efficiency to decrease.
Answers (1)
Adventures Company provides event management services. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment.
Answers (1)
Being a first mover in a market is advantageous for a firm because: Group of answer choices it may have an opportunity to free ride on late-mover investments. it may gain advantage through proprietary technology.
Answers (1)
In pure competition, the demand for the product of a single firm is perfectly Multiple Choice A) elastic because the firm produces a unique product. B) inelastic because the firm produces a unique product.
Answers (1)
Suppose Toyota built a new automobile plant in Mexico using Japanese management practices, Canadian capital, and Mexican labour. Which of the following statements would be true? A.
Answers (1)
Home » Business » The market interest rate related to a bond is also called the
Sign Up Forgot Password?