What is meant by market rate of interest, stated or contract rate, and effective or yield rate?

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What is meant by market rate of interest, stated or contract rate, and effective or yield rate? Which of these rates changes during the lifetime of the bond issue?

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Jan 28, 2012 05:33 AM

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What is meant by market rate of interest, stated or contract rate, and effective or yield rate?

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The market rate of interest is the rate prevailing in the market at the moment The sta...View the full answer

Intermediate Accounting

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