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The market interest rate of a bond is: Multiple Choice An implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and periodic interest
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The market interest rate of a bond is: Multiple Choice An implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and periodic interest payments over the remaining life of the bond. A government-issued rate based on general economic conditions. The rate specified in the bond contract used to calculate the cash payments for interest. The amount of principal to be returned to the bondholder at the maturity date.

User Edward Moffett
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Answer:

a. An implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and periodic interest payments over the remaining life of the bond.

Step-by-step explanation:

The market interest rate of a bond is an implied rate based on the price investors pay to purchase a bond in return for the right to receive the face amount at maturity and periodic interest payments over the remaining life of the bond.The market interest rate of bond are specified in the bond contract, of which the ultimate purpose is to calculate cash payments.

User Mirzak
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