The rate quoted in the bond contract used to calculate the cash payments for interest is called the:
A)Face rate.
B)Yield rate.
C)Market rate.
D)Stated rate.

Question

Quizplus · Accepted Answer

The rate quoted in the bond contract is called the stated rate, which is also known as the coupon rate. It is the fixed cash payment made by the bond issuer to the bondholders and is usually stated as a percentage of the bond's face value. Therefore, option D - stated rate is the correct answer.

The Rate Quoted in the Bond Contract Used to Calculate