Which of the following is not another term for the true rate or cost of borrowing considering compound interest?

A) nominal rate
B) effective rate
C) market rate
D) yield

Nominal Rate

The stated interest rate of a loan or financial product, not adjusted for inflation or other factors that affect the real rate of return.

Effective Rate

The actual interest rate earned or paid on an investment, loan, or other financial product, taking into account the effect of compounding.

Compound Interest

This refers to the calculation of interest on the original amount of money deposited or borrowed as well as on the interest that has already accumulated over previous periods.