Multiple Choice QuestionA bond's annual interest rate is sometimes called the ______.Multiple choice question.collateralmaturity ratecoupon rateindenture

Question

Multiple Choice QuestionA bond's annual interest rate is sometimes called the ______.Multiple choice question.collateralmaturity ratecoupon rateindenture
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Solution 1

The correct answer is "coupon rate".

A bond's annual interest rate is often referred to as the coupon rate. This is the rate of interest paid by bond issuers on the bond's face value. It is called a "coupon rate" because before electronic trading, a bondholder would actually clip a coupon from the Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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