The Stated rate of interest is the interest rate as committed by the bond issuer during the lifetime of the bonds. However, the market rate of interest is the rate which the investor in the market expects to get on its investment. The difference betweenstated rate of interest and market rate of interest need to be determined.

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Chapter 14, Problem 5RQ

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The Stated rate of interest is the interest rate as committed by the bond issuer during the lifetime of the bonds. However, the market rate of interest is the rate which the investor in the market expects to get on its investment.

The difference betweenstated rate of interest and market rate of interest need to be determined.

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