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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 7: Interest Rates and Bond Valuation
  5. Question
    The Rate That Is Computed by Dividing the Annual Interest
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The Rate That Is Computed by Dividing the Annual Interest

Question 3

Question 3

Multiple Choice

The rate that is computed by dividing the annual interest payment by the face value of a bond is called the:


A) Discount rate.
B) Yield to maturity.
C) Coupon rate.
D) Yield to call.
E) Market rate.

Correct Answer:

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