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The stated interest rate is the rate quoted in the bond contract used to calculate the cash payments for interest.

a. True
b. False

User Tharun K
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1 Answer

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That statement is true

A stated interest rate is the return of investment that is not compounded by the interest accumulation throughout the years.
In general, a stated interest rate will give us a lower amount of return compared to effective annual interest rate that compound the accumulation throughout the years,
User Dave Snigier
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