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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
 Could you please explain in couple of sentences , example in your text and the difference between stated interest rate and market (effective) interest rate...
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1. Discuss the distinction between the stated interest rate and the market or effective interest rate:
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           a.   The stated interest rate is used to determine the periodic amount of cash interest paid.
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           b.   The market or effective interest rate is used to value the bonds. This is the rate which is used to locate the factor in the present value tables.
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    2.   The example in the text demonstrates valuation of bonds which pay interest annually.
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