Coupon rate of bond is also called____________?
Correct answer: D. Both a and c
- A. Nominal rate
- B. Premium rate
- C. Quoted rate
- D. Both a and c
Explanation
The coupon rate is the stated or quoted annual interest rate applied to a bond's par value, so both “nominal rate” and “quoted rate” describe it. Therefore the combined option is required.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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