Respuesta :
False. The rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as stated rate, therefore the given statement the rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as the market rate is false.
The market rate (or "going rate") for goods or services is the usual price charged for them in a free market. If demand goes up, manufacturers and laborers will tend to respond by increasing the price they require, thus setting a higher market rate. When demand falls, market rates also tend to fall.
The rate of interest specified in a bond
contract as the interest rate to be paid by the company to investors in the bond is known as market rate. The market price is defined as the price for goods or services is the usual price charged for them in a free market. Therefore the given statement is false and the correct answer is stated price. Hence, The given statement is false because the rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as stated rate.
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