Overreaching Can Occur Even Where No Money Is Actually Paid

question 22

True/False

overreaching can occur even where no money is actually paid to the trustees at the time of the transfer.

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Definitions:

Discount

The excess of the face amount of bonds over their issue price or the excess of the par value of stock over its issue price.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value or par value.

Contract Rate

This term typically refers to the interest rate agreed upon in a financial or loan agreement.

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, or savings.