The Coupon Rate Is the Contractual Rate of Interest Paid

question 95

Multiple Choice

The coupon rate is the contractual rate of interest paid on the ________ of the bond.

• A) present value
• B) face value
• C) price
• D) prevailing rate of interest

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Definitions:

Uniform Continuous Probability Distribution

A type of distribution where all outcomes in a certain interval are equally likely.

Equally Likely

A term used in probability to denote outcomes that have the same chance of occurring.

Continuous Probability Distributions

Mathematical functions that represent the probabilities of all possible continuous outcomes for a random variable.

Bernoulli Distribution

A probability distribution of a random variable that takes the value 1 with probability 'p' and the value 0 with probability '1-p'.