Charitable Subscriptions by Which Individuals Make Pledges to Finance the Construction

question 21

True/False

Charitable subscriptions by which individuals make pledges to finance the construction of a college building,a church or another structure for charitable purposes are binding to the extent that the donor should have reasonably realized that the charity was relying on the promise in undertaking the building program.

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Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Market Interest Rate

The prevailing rate of interest available in the market on loans, bonds, and other financial instruments.

Semi-Annual

Occurring twice a year, typically every six months.

Long-Term Notes

Debt securities with a maturity date longer than one year, representing borrowed funds that need to be repaid.