The interest rate on which cash payments to debenture holders are based is the:
A)amortisation rate.
B)market rate.
C)discount rate.
D)stated rate.

Name: The interest rate on which cash payments to debenture holders are based is the: A)amortisation rate. B)market rate. C)discount rate. D)stated rate.
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Question

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The stated rate is the interest rate that is specified in the debenture agreement and on which the cash payments to debenture holders are based. This is also known as the coupon rate.

The Interest Rate on Which Cash Payments to Debenture Holders