Match these terms with their definitions.
-The rate that reflects the provisions of the debt instrument, the credit standing of the borrowing business, and the current conditions in the credit markets and the economy as a whole.
A)Bond
B)Contract, coupon, stated rate
C)Discount
D)Effective interest rate method
E)Face value, par value, principal
F)Interest amortization
G)Lease
H)Lessee
I)Lessor
J)Leverage
K)Long-term debt
L)Market rate, yield
M)Maturity
N)Premium
O)Straight-line method

Question

Quizplus · Accepted Answer

The definition describes the rate that incorporates various factors such as the terms of the debt instrument, the borrower's creditworthiness, and the overall economic and credit market conditions. This rate is commonly referred to as the "market rate" or "yield" on a debt instrument. It is the return that investors demand for lending their money, and it fluctuates based on the factors mentioned in the definition.

Match These Terms with Their Definitions