Which of the Following Is Not a Required Element of a Valid

question 6

Multiple Choice

Which of the following is not a required element of a valid offer?

• A)Reasonably definite terms.
• B)Communication to the offeree.
• C)A written document setting forth offer terms.
• D)Intent by the offeror to be bound by an agreement.
• E)Serious intent by the offeror.

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Definitions:

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all payments of interest and principal.