When determining the amount of interest to be paid on a bond,which of the following pieces of information is necessary?

Question

Quizplus · Accepted Answer

The stated rate of interest on the bonds is necessary to determine the amount of interest to be paid on the bond. This is the rate that is set by the issuer of the bond and is the rate used to calculate the interest payments. The value of the bonds in one year and the selling price of the bonds are not directly related to the interest payments, and the effective rate of interest takes into account additional factors like compounding and fees, which are not necessary to determine the amount of interest paid on the bond.

When Determining the Amount of Interest to Be Paid on a Bond,which