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When the Stated Interest Rate for a Loan Equals the Yield

Question 41

Multiple Choice

When the stated interest rate for a loan equals the yield required by the lender, then the amount borrowed equals the


A) principal amount of the loan.
B) principal amount of the loan plus a premium.
C) principal amount of the loan less a discount.
D) fair amount of the loan.
E) fair amount of the loan less a discount.

Correct Answer:

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