Craig Makes an Offer to Josie by Mail, Because She

question 54

True/False

Craig makes an offer to Josie by mail, because she cannot be reached by telephone. She replies by mail, accepting the offer. Canada Post mislays her reply for several weeks. Craig, who has given up waiting to hear from her, has entered into the contract with someone else after waiting for a reasonable time. Josie can sue Craig for breach of contract.

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Definitions:

Coupon Rate

The yearly percentage rate of interest that is paid on a bond, relative to its nominal value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for its current market price, face value, interest rate, and time to maturity.

Face Value

The original cost of a security or bond, as printed on the certificate, which does not change over time.

Coupon Rate

The interest rate specified on a bond or other fixed income security that the issuer promises to pay to the holder until maturity.