Answer:
The market interest rate associated with a bond is also referred to as the
c.effective interest rate.
Explanation:
The market interest rate is alternatively known as the current interest rate, the yield-to-maturity, or the effective interest rate. A key distinction is that the market interest rate fluctuates while the stated interest rate remains constant. The stated interest rate is the rate explicitly indicated on a bond's face, determining the interest the bondholder receives. Hence, the market interest rate represents what investors require as compensation for lending their funds to the company.
Answer:
On the pro side of not indicating the 10% would be that it could be perceived as merely a rumor until the price reduction is formally confirmed. The unethical viewpoint regarding withholding knowledge of an impending 10% drop is that the production manager has kept his boss in the dark about a potential cost-saving opportunity for the company.
