Why do we use the market interest rate to calculate the price of a bond, rather than the bond’s stated interest rate? Meals for the Homeless borrowed $10,000 to buy kitchen equipment. It took out a...

Why do we use the market interest rate to calculate the price of a bond, rather than the bond’s stated interest rate?

Meals for the Homeless borrowed $10,000 to buy kitchen equipment. It took out a mortgage from a bank, agreeing to repay the full amount plus interest at a 6 percent rate in 10 annual installments. How much will it pay the bank (including interest and principal) each year?