Why do the stated (contract) rate and the effective rate (yield) of interest on bonds frequently differ?

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: Oct 05, 2015 05:29 AM

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Why do the stated (contract) rate and the effective rate (yield) of interest on bonds frequently differ?

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The effective rate yield on bonds frequently differs from the contract state...View the full answer

Intermediate Accounting Reporting and Analysis

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