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The market rate of interest​ ________.
A. affects the amount of cash interest the borrower pays each year
B. works with the stated rate of interest to set the price of a bond
C. is printed on the bond and does not change from year to year
D. is also known as the stated rate of interest

Respuesta :

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Answer:

The answer is: A) affects the amount of cash interest the borrower pays each year

Explanation:

The market interest rate is the rate that investors demand to earn for lending their money. It affects the interest rate of every type of loan (including the stated interest rate of bonds, car loans, credit cards, etc.) because when it increases (because investors want to earn more money), the general level of interest rate for loans also increases.

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