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The Interest Rate on a Bond Is

Question 14

Multiple Choice

The interest rate on a bond is


A) the difference between the face value and the bond price, expressed as a percentage of the face value.
B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
C) the ratio of the face value and the bond price, expressed as a percentage.
D) the difference between the face value and the yield, expressed as a percentage of the bond price.

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