The market interest rate on a bond is also known as the effective interest rate or yield.
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The statement is true. The market interest rate is the rate at which investors are willing to lend money to the issuer of the bond, and it is typically expressed as a percentage of the bond's face value. This rate is also known as the effective interest rate or yield, and it represents the total return that an investor can expect to receive from the bond over its maturity period.

The Market Interest Rate on a Bond Is Also Known