Mark Gives a Bearer Note for $50 to Joe in Exchange

question 29

Multiple Choice

Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe's restaurant. Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid. If Mark says the note was originally written for only $5, what can Sue do?

• A) Hold Joe liable for breach of warranty.
• B) Get $50 from Mark.
• C) Hold Joe liable for breach of contract.
• D) Only get $5 from Mark.

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Definitions:

Modified Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, indicating how much the price will change as interest rates move.

Semiannually

Occurring or payable twice a year.

Steel Pier

A historic oceanfront amusement park located in Atlantic City, New Jersey, known for its entertainment offerings.

Modified Duration

A measure that quantifies the sensitivity of a bond's price to changes in interest rates, adjusted for the bond's yield.