Sharon lives in a state that has a no-fault automobile insurance law. Under the law, an injured person has the right to sue the negligent driver only if the bodily injury claim exceeds a dollar or verbal threshold.
The no-fault law in Sharon's state is a(n)
A) pure no-fault plan.
B) modified no-fault plan.
C) add-on plan.
D) choice no-fault plan.
Question 2
A zero coupon bond pays no annual coupon interest payments.
When it matures at the end of 7.5
years it pays out 1,000. If investors wish to earn 2.35 per year on this bond investment, what is
the current price of the bond? (Round to the nearest dollar.)
A) 875 B) 561 C) 840 D) 533
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