Which of the following terms does not describe the interest rate printed on the bond certificate?
A)coupon rate
B)yield rate
C)contract rate
D)stated rate

Question

Quizplus · Accepted Answer

a. Coupon rate - This is the interest rate stated on the bond certificate that the issuer agrees to pay the bondholder. It is usually expressed as an annual percentage of the bond's face value.
b. Yield rate - This refers to the return on the bond based on its current market price and the interest payments (coupons) the bondholder receives. It is not printed on the bond certificate because it can fluctuate over time as market conditions change.
c. Contract rate - This is another term for the interest rate agreed upon in the bond's contract, which is the same as the coupon rate.
d. Stated rate - This is another term for the coupon rate, which is the rate stated on the bond certificate that the issuer will pay to the bondholder.
Therefore, the yield rate is the correct answer because it is not a fixed rate printed on the bond certificate but rather a rate that reflects the bond's market value and current interest rates.

Which of the Following Terms Does Not Describe the Interest