The contractual rate of interest on a bond is always stated as a(n)

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The contractual rate of interest on a bond is always stated as an annual rate. This is known as the coupon rate, and it represents the percentage of the bond's par value that will be paid to the bondholder each year in the form of interest payments. However, interest payments may be made on a semi-annual, quarterly, or even monthly basis, depending on the specific terms of the bond.

The Contractual Rate of Interest on a Bond Is Always