Four Days Ago, Pete Was Reading the Newspaper and Saw

question 101

Multiple Choice

Four days ago, Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer - $400! When he went to the store this afternoon and said he wanted one, they replied that they didn't have any left, nor could they get one. On these facts, which of the following is true?

• A) Pete could sue them for breach of contract because he was accepting the offer in the newspaper.
• B) The store had revoked the offer before he tried to accept.
• C) The offer by the store had lapsed before he tried to accept.
• D) The wording in the newspaper was merely an invitation to the public to do business, and no contract was formed.
• E) Pete could sue for breach of an option contract.

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Definitions:

Coupon Rate

The percentage of interest returned by a bond annually, measured against its face value.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

Yearly interest payment on a bond, specified as a percentage of its listed value.

Bond Prices

Bond prices are the market value of bonds, which can fluctuate based on interest rate changes, credit risk, and other factors.