In the Elysian Forest Example,the Planned Unit Development Was Destined

question 13

Multiple Choice

In the Elysian Forest example,the planned unit development was destined to be an unsuccessful venture from its inception because:

• A)There was a comparable project in the community that was successful.
• B)The site and location of the project was atypical of the area as there were significant disadvantages in terms of location and visual appeal.
• C)The prices were higher than most homes in the area and the target market was a nontraditional segment that relied heavily on a small portion of the local University City population.
• D)University City was a big,high density city that could not support such development.

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Definitions:

Par Value

The face or nominal value of a bond, stock share, or coupon, as specified by the issuer.

Coupon Rate

Annually, the interest earned on a bond represented as a percentage of its face value.

Premium Bond

Bond prices and interest rates are inversely related; that is, they tend to move in the opposite direction from each other. A fixed-rate bond will sell at par when its coupon interest rate is equal to the going rate of interest, rd. When the going rate of interest is above the coupon rate, a fixed rate bond will sell at a “discount” below its par value. If current interest rates are below the coupon rate, a fixed rate bond will sell at a “premium” above its par value.

Floating Rate Bond

A floating rate bond is a bond with a variable interest rate, which adjusts periodically according to a specified benchmark.