The rate of interest expense incurred on a bond payable for bonds of similar risk is called the:

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The rate of interest expense incurred on a bond payable for bonds of similar risk is called the market rate. This is the rate at which investors are willing to purchase similar bonds in the market. It is important for companies to use the market rate to calculate their interest expense as it reflects the current market conditions and the company's cost of borrowing. The face rate is the rate of interest that is stated on the bond certificate, the yield rate is the rate of return that an investor can expect to earn on a bond, and the stated rate is another term for the face rate.

The Rate of Interest Expense Incurred on a Bond Payable