The Rate Quoted on the Bond Contract Used to Calculate

question 11

Multiple Choice

The rate quoted on the bond contract used to calculate the cash payments for interest is called the:

• A)Face interest rate.
• B)Interest expense rate.
• C)Market interest rate.
• D)Stated interest rate.

---

Definitions:

Tax Credit

A tax incentive which allows taxpayers to subtract the amount of the credit from the total they owe to the state.

Loanable Funds

Money available for lending and borrowing, determined by the supply of savings and demand for loans.

Rightward

Used to describe movement towards the right, often in the context of shifts in supply or demand curves in economic graphs.

Tax Rate

The rate at which the government taxes an individual or corporation's income or earnings.