Which rate of interest actually earned by bondholders called

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Problem 1: Ace Corporation has a debt to total assets ratio of 65%. This tells the user of Ace's financial statements

Option 1: Ace is getting a 35% return on its assets

Option 2: There is a risk Ace cannot pay its debts as they come due

Option 3: 65% of the assets are financed by the stockholders

Option 4: Ace should issue more debt to reduce its risk

Problem 2: The rate of interest actually earned by bondholders is called the

Option 1: Effective rate

Option 2: Stated rate

Option 3: Coupon rate

Option 4: Nominal rate

 

Reference no: EM132826823

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