The Contract Rate Is Also Called the

question 95

Multiple Choice

The contract rate is also called the

• A)Coupon rate
• B)Stated rate
• C)Nominal rate
• D)Interest rate
• E)All of these

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Definitions:

Quarterly Dividends

Dividends that are declared and paid by a company four times a year, usually at a fixed rate per share.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Legal Dividend

A dividend that a company is legally allowed to distribute as determined by its net income or retained earnings.

Noncumulative Preferred Stock

A type of preferred stock that does not accumulate unpaid dividends; if a dividend is skipped, it is not required to be paid later.