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The market interest rate of a bond is:
Multiple Choice
The rate specified in the bond contract used to calculate the cash payments for interest.
The amount of principal to be returned to the bondholder at the maturity date.
An implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and
periodic interest payments over the remaining life of the bond.
A government-issued rate based on general economic conditions.
The market interest rate of a bond is:
Multiple Choice
The rate specified in the bond contract used to calculate the cash payments for interest.
The amount of principal to be returned to the bondholder at the maturity date.
An implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and
periodic interest payments over the remaining life of the bond.
A government-issued rate based on general economic conditions.
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