A Valid Contract Requires

question 33

Multiple Choice

A valid contract requires

• A)a price and a subject.
• B)a duration and termination provision.
• C)an offer and an acceptance.
• D)specific quality standards.

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Definitions:

Compounded Semi-annually

This refers to the process of calculating interest on an investment or loan, with the interest being added to the principal balance twice a year, typically every six months.

Strip Bond

A bond where both the principal and regular interest payments have been separated and are sold individually.

Yield Rate

The rate of return on an investment over a specified period, expressed as a percentage, considering both interest and dividends.

Compounded Semi-annually

When interest is compounded semi-annually, it is calculated and added to the principal amount twice a year.