The market interest rate related to a bond is also called the Group of answer choices stated interest rate effective interest ra

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lana66690 [7]

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The market interest rate related to a bond is also called the Group of answer choices stated interest rate effective interest ra

te contract interest rate straight-line rate

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1 answer:

Naddika [18.5K] · Answer 1 · 2022-06-07T18:04:02+03:00

Answer:

Effective Interest Rate

Explanation:

Effective Interest Rate

The market interest rate is the real return on the bonds, or any interest offering investment. It is otherwise known as the effective interest rate. Moreover, there is an inverse relationship between the market interest rate and the value of bonds that means an increase in the market interest rate will result in a decrease in the market values of bonds.