Which One of the Following Relationships Is Stated Correctly

question 85

Multiple Choice

Which one of the following relationships is stated correctly?

• A) The coupon rate exceeds the current yield when a bond sells at a discount.
• B) The call price must equal the par value.
• C) An increase in market rates increases the market price of a bond.
• D) Decreasing the time to maturity increases the price of a discount bond, all else constant.
• E) Increasing the coupon rate decreases the current yield, all else constant.

Understand the impact of fundamental breach on the applicability of exemption clauses.

Comprehend the legal principles surrounding the termination of contracts, including repudiation and frustration.

Describe the process and legal requirements for novation and the substitution of parties in a contract.

Outline the remedies available for breach of contract, including specific performance, damages, and the principle of mitigation.

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Definitions:

Due Process

A fundamental principle in the justice system that guarantees fair treatment through the normal judicial system, especially a citizen's entitlement to notice of a charge and a hearing before any governmental deprivation of life, liberty, or property.

Plessy v. Ferguson

A landmark 1896 U.S. Supreme Court case that upheld the constitutionality of racial segregation under the "separate but equal" doctrine.

Racial Segregation

The enforced separation of different racial groups in a country, community, or establishment, leading to inequality and discrimination.

Civil Rights

Rights ensuring personal freedom and equality, protected by law from unjust governmental or other interference, specifically focusing on preventing discrimination.