Last Week, Chris Offered to Sell Her Printer to a Classmate

question 136

Multiple Choice

Last week, Chris offered to sell her printer to a classmate for $200.Her offer included these exact words: "This offer to be open until noon, February 20." She now has second thoughts and thinks she should give or sell it to her brother, who has gone back to school.She wants to end the offer.Which of the following would not end the offer?

• A)Chris's death before acceptance
• B)The sale of the printer to her brother before acceptance
• C)Revocation of the offer by Chris before acceptance
• D)Expiration of the offer at noon on February 20 if there has been no acceptance
• E)A counter-offer by an offeree

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Definitions:

Bondholder

An investor who owns bonds issued by corporations or governments, thereby lending money to the issuer in return for periodic interest payments and the return of principal at maturity.

Annual Coupon Rate

The interest rate a bond pays its holder, expressed as a percentage of its face value and payable annually.

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which includes terms regarding the interest rate and when the loaned funds (bond principal) must be paid back (maturity).

Effective EAR

The Effective Annual Rate is the actual return on an investment, taking into account the effect of compounding interest.