The rate of interest expense incurred on a bond payable for bonds of similar risk is called the:

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The market rate represents the rate of interest that investors demand on bonds of similar risk. This rate determines the interest expense that the issuer will incur on its bond payable. It is also known as the effective interest rate, and it is used to calculate the present value of the bond's future cash flows. The face rate is the rate of interest that is printed on the face of the bond and is used to determine the bond's cash interest payments. The yield rate is the rate of return that an investor earns on a bond, and it may differ from the market rate due to changes in the bond's price. The stated rate is another name for the face rate and is used to disclose the bond's contractual interest rate.

The Rate of Interest Expense Incurred on a Bond Payable