Which of the Following Is a Feature of a Charitable

question 10

Multiple Choice

Which of the following is a feature of a Charitable Remainder Annuity Trust?

• A)Additional contributions cannot be made to the trust property.
• B)Payments to the beneficiary vary annually.
• C)It counteracts the effects of inflation.
• D)It is revocable.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period or maturity date, including both the principal and any remaining interest payments.

Stated Rate

The interest rate stated on the face of a bond or other fixed-income security, which is used to calculate the interest payments to the bondholders.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a substantial discount from their face value.