Which Bond Provision Would Be Considered the Most Risky for an Investor

question 64

Multiple Choice

Which bond provision would be considered the most risky for an investor who is concerned that market interest rates will drop dramatically over the life of the bond?

• A) Sinking fund
• B) Deferred call
• C) Freely callable
• D) Non-callable
• E) None of the above

Recognize when a contract is voidable due to material misrepresentation.

Identify the characteristics and formation of implied in fact contracts and express contracts.

Describe the basic requirements for a valid contract including the necessity of absence of invalidating conduct.

Comprehend when unilateral contracts are formed and how performance can signify acceptance.

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Definitions:

Domestic Quantity Supplied

The total amount of a good or service that is provided within a country's borders during a specific time period.

Domestic Quantity Demanded

The total amount of a product or service that consumers in a particular country are willing and able to purchase at a given price.

World Price

The international market price of a good or service, determined by global supply and demand dynamics.

Hypothetical Nations

Imaginary or theoretical countries used for academic or policy analysis purposes.