An Agent Has the Power to Contractually Bind His Principal

question 34

True/False

An agent has the power to contractually bind his principal whenever he has actual or apparent authority and acts within his authority.

Grasp the concepts of present value and how they apply to financial decisions.

Recognize the various types of bonds and their backing securities.

Compare bonds and long-term notes in terms of their dealings with lenders.

Understand the tax implications of owning coupon bonds.

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Definitions:

Exchange Rate

A financial metric used to determine how much one currency is worth in terms of another for trade and financial transactions.

Unbiased Forward Rates

Future rates of interest inferred from current bond prices, assuming no arbitrage opportunities.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in derivatives markets.

Exchange Rate

The worth of one currency in relation to another for converting between them, showing the amount one currency is equivalent to in another currency.