A Buyer Makes a Contract to Buy Property from a Seller

question 6

True/False

A buyer makes a contract to buy property from a seller. Before completion (the date title transfers), the buildings on the property are destroyed by a fire set by a neighbour. The contract is discharged due to frustration.

---

Definitions:

Current Yield

The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.

8% Bond

A bond that pays an annual interest rate of 8% on its face value, typically issued by corporations or governments as a form of debt financing.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, taking into account its current market price, par value, coupon interest rate, and time to maturity.

6 ¾% Bond

A bond that pays an annual interest rate of 6.75% to its holder, typically issued by governments or corporations.