Use the Following Information to Answer the Question(s)below

question 49

Multiple Choice

Use the following information to answer the question(s) below.
-A default-free security has an annual coupon rate of 3.25% and sells for par.This bond will mature in:

• A)1 year.
• B)2 years.
• C)3 years.
• D)4 years.

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Definitions:

Precedent

An earlier event or action regarded as an example or guide to be considered in subsequent similar circumstances.

Judicial Review

The power of courts to assess whether a law, policy, or executive action is in accord with the constitution or law.

Strict Construction

A legal philosophy that interprets the Constitution in a literal and narrow way, focusing closely on the text and the original intentions of the framers.

Appellate Court

A court that reviews and possibly overturns lower court decisions on legal errors, without typically re-evaluating evidence.