Bhagiratha Has the Fee Simple in a Piece of Land

question 20

Multiple Choice

Bhagiratha has the fee simple in a piece of land called Blackacre.She is about to create two new interests in that property.Gallahad will receive a life estate.Adeline will receive the remainder.Which of the following statements is TRUE?

• A)The doctrine of waste will impose an onerous obligation on Adeline.
• B)Bhagiratha will eventually receive the reversion.
• C)Adeline will not receive any benefit if Bhagiratha dies before Gallahad.
• D)Gallahad will receive an estate in Blackacre.
• E)Adeline and Gallahad must be related.

---

Definitions:

Conversion Value

The worth of a convertible security if it was converted into a different security, typically shares of the issuing company, at the current market price.

Straight Bond Value

The present value of a bond's future interest payments and its redemption value at maturity.

Conversion Price

The predetermined price at which convertible security can be exchanged for another asset, often shares of the issuing company's stock.