The Law Will Enforce Contracts Only When They Are Executed

question 2

Multiple Choice

The law will enforce contracts only when they are executed between persons who are __________.

• A) incompetent to contract
• B) without legal capacity to contract
• C) without mental capacity to contract
• D) who are competent to contract

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Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond's face value by the bond's issuer, representing the interest income received by bondholders.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Capital Gain Yield

The price appreciation component of a stock's total return, excluding dividends, expressed as a percentage of the initial price of the stock.

Par Value

The face value of a bond or stock, as specified by the issuing company, which does not necessarily reflect its market value.