A § 501(c)(3) Organization That Otherwise Would Be Classified as a Private

question 25

Multiple Choice

A § 501(c) (3) organization that otherwise would be classified as a private foundation can avoid such classification if it satisfies:

• A)Only an external support test.
• B)Only an internal support test.
• C)Both an external support test and an internal support test.
• D)An external support test, an internal support test, and a good faith test.
• E)None of the above.

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Definitions:

Default Probability

The likelihood that a borrower will be unable to meet debt obligations, leading to a default on the obligation.

Annual Coupon

The interest payment made by a bond issuer to the bondholders, usually annually.

Yield To Maturity (YTM)

The rate of interest earned on a bond if it is held to maturity.

Premium

Premium in finance usually refers to the extra amount paid over the standard or nominal value, as in insurance premium payments or the additional amount to purchase securities.