About Ten Years After Their Marriage, Eric and Bev Had

question 96

Multiple Choice

About ten years after their marriage, Eric and Bev had saved enough money to buy an investment property. First they bought a duplex, which they held as joint tenants, and later they bought a building lot in Lethbridge, which they held as tenants in common. Eric's will provided that his interest in the duplex would go to their daughter, Lisa, and that his interest in the Lethbridge lot would go to their son, Max. Indicate the statement that accurately describes who will take what upon Eric's death.

• A) Lisa will get his interest in the duplex and Max will get the interest in the Lethbridge lot, just as the will said.
• B) Bev will get both properties because she and Eric co-owned them both.
• C) Bev will get Eric's interest in the duplex but Max will take Eric's interest in the Lethbridge lot.
• D) Bev will get Eric's interest in the Lethbridge lot but Lisa will get his interest in the duplex.
• E) Max will get Eric's interest in both properties as the oldest son.

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Definitions:

Zero-Coupon Bonds

Bonds that are sold at a discount and pay no regular interest payments but are redeemed at their face value at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, accounting for its current price, interest payments, and face value.

Maturity

The date on which a financial instrument (e.g., bond, loan) reaches its final installment, and the principal is due to be paid to investors.

Expectations Theory

A theory related to interest rates stating that the long-term interest rates are geometric averages of present and future short-term interest rates, reflecting market assumptions about future rates.