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Under This Method for Figuring the Interest Rate on a Loan

Question 20

Multiple Choice

Under this method for figuring the interest rate on a loan, the borrower receives as proceeds of the loan the difference between the total amount owed and the interest bill. This method is reflected in which of the following rate measures?


A) Coupon rate
B) Yield to maturity
C) Current yield
D) Holding-period yield
E) Annual percentage rate (APR)
F) Simple interest rate
G) Add-on rate
H) Discount rate

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