Answer:
Voidable Contract
Explanation:
Voidable Contract
This is a type of contract or legal agreement in which any of the parties involved or the both parties may chose to render it unenforceable for a given number of reasons. This type us different from a void contract in that, it is a valid contract which may either be affirmed or rejected by both or either parties.
Some reasons that may lead to the withdrawal of the contract are misinterpretation, coercion and fraud etc.
It is a valid contract that can be declared invalid. It is different from VOID as earlier pointed out as a void contract cannot be enforced by either party. Examples of voidable contract are found in real estate contract, lawyer contract and so on.
1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,
2) if the required return is less than the coupon rate the bond will sell at a premium.
Explanation:
1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.
2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.
Elaina and Allen just purchased a home using a deed of trust: A trustee will keep the title in its most basic form until the debt is paid off. This is further explained below.
<h3>What is a deed of trust?</h3>
Generally, From the perspective of the lender, a deed of trust offers a significant advantage over a mortgage in a number of important respects. In the event that the borrower fails to make their required payments on the loan, the trustee has the authority to use their right to foreclose on the property on behalf of the beneficiary.
In conclusion, A deed of trust was used in the recent purchase of a property by Elaina and Allen. Until the mortgage debt is completely paid off, a trustee will retain the title in its simplest form.
Read more about the deed of trust
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