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Unformatted text preview: corporation or be subject to paying at a later date. Fundamental Accounting Principles -- Pg 509 Chapter 14, #6 6. What are the contract rate and the market rate for bonds? The contract rate for bonds is the interest rate specified in a bond indenture (or note); multiplied by the par value to determine the interest paid each period; also called coupon rate, stated rate, or nominal rate. Market rate for bonds is the interest that borrowers are willing to pay and lenders are willing to accept for a specific lending agreement given the borrower's risk level. Fundamental Accounting Principles -- Pg 553...
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- Spring '09