What Is the Market Rate

question 73

Multiple Choice

What is the market rate?

• A)Price of bond on issue date.
• B)Amount to be repaid at maturity.
• C)Rate of return earned by the investor.
• D)Interest rate specified in the bond indenture.

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Definitions:

Proportional Tax

A tax system wherein the tax rate is fixed and applied uniformly to all taxpayers, regardless of their income level.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.

Benefits Tax

A taxation principle where taxes are levied according to the benefits received by the taxpayer.

Proportional

Characterized by a constant ratio or relation in degree or number between two or more quantities; directly comparative in size, degree, or amount.