A Condition Subsequent Terminates a Party's Promise to Perform

question 37

True/False

A condition subsequent terminates a party's promise to perform.

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Definitions:

Zero-Coupon Bond

A debt security that does not pay periodic interest and is sold at a discount from its face value, with its return coming at the bond's maturity.

Yield To Maturity

A bond's expected rate of return if held until its maturity date, calculated based on its current market price, coupon rate, and time to maturity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set by the issuing company at the time of issue.

Coupon Bond

A debt security issued by corporations or governments that pays periodic interest payments based on a fixed interest rate until the bond reaches its maturity date, at which point the principal is repaid.