The rate of interest printed on the face of a note payable is called the:
A) Yield rate.
B) Effective rate.
C) Market rate.
D) Stated rate.

Question

Quizplus · Accepted Answer

The rate of interest printed on the face of a note payable is called the stated rate. The other options are not relevant in this context. Yield rate refers to the return on investment, effective rate is the actual rate paid or earned after accounting for compounding, while market rate is the current rate of return required by the market for similar investments.

The Rate of Interest Printed on the Face of a Note