Valley Paragliders Association files a suit against Wing Designers, Inc, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if
A) there is a large disparity in the amount of consideration exchanged
B) the consideration involves the performance of services.
C) something of value passed between the parties.
D) the consideration is worth less than $100.
C
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A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $15.14. What is the minimum call price that would make a bondholder prefer to accept the call rather than convert?
Coupon 0% Conversion Ratio: 70 shares per $1,000 principal amount Call Date: July 1, 2008 Maturity: July 1, 2015 A) par plus 3.29% B) par plus 3.89% C) par plus 4.49% D) par plus 5.98%
A Forward Rate Agreement contains an agreed interest rate of 3.1% on a 6-month loan. If settled in arrears, what amount would the borrower pay or receive on an $800,000 loan if the prevailing 6-month interest rate is 3.6%?
A) $4,000 payment B) $4,000 receipt C) $1,729 payment D) $1,729 receipt