When determining the amount of interest to be paid on a bond, which of the following information is necessary?
A)the value of the bonds in one year
B)the selling price of the bonds
C)the stated rate of interest on the bonds
D)the effective rate of interest on the bonds

Question

Quizplus · Accepted Answer

The stated rate of interest on the bonds is necessary to calculate the amount of interest to be paid on a bond. The other options (A, B, and D) are not directly related to determining the amount of interest.

When Determining the Amount of Interest to Be Paid on a Bond