What Is the Doctrine of in Pari Delicto with Reference

question 63

Multiple Choice

What is the doctrine of in pari delicto with reference to contracts?

• A)It is a situation in which both parties are equally at fault in an illegal contract.
• B)It is a situation where one party has unknowingly signed a contract to commit crimes.
• C)It gives minors the right to disaffirm a contract.
• D)It is a special exemption right to circumvent usury laws.

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Definitions:

Bond Yields

The amount of return an investor realizes on a bond, calculated as the percentage of the bond's annual interest payments relative to its market price.

Yield To Call

The return a bondholder gets if the bond is held until the call date, which is before the bond's actual maturity date.

Expected Capital Gains Yield

The anticipated rate of return from an investment due to an increase in its market price.

Reinvestment Rate Risk

Occurs when a short-term debt security must be “rolled over.” If interest rates have fallen, the reinvestment of principal will be at a lower rate, with correspondingly lower interest payments and ending value.