The Interest Rate Promised When a Bond Is Issued Is

question 25

Multiple Choice

The interest rate promised when a bond is issued is called the:

• A)coupon rate.
• B)real rate of interest.
• C)dividend rate.
• D)discount rate.

---

Definitions:

Ethical Egoism

A moral philosophy that posits individuals should act in their own self-interest because it is the moral thing to do.

Principle of Utility

A foundational concept in utilitarianism that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Kant

Immanuel Kant, a German philosopher whose work in metaphysics, ethics, and aesthetics played a central role in modern philosophy, emphasizing the limits of human knowledge and the importance of moral principles.

General Policy

Broad, overall plans, guidelines, or procedures designed to guide actions toward achieving long-term goals or objectives.