In 2013,a Private College Received a Grant of $70,000 with Purpose

question 81

Multiple Choice

In 2013,a private college received a grant of $70,000 with purpose restrictions.In 2014 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

• A) The restricted funds would have been used first.
• B) The unrestricted funds would have been used first.
• C) The restricted funds and unrestricted funds would have been used equally.
• D) The restricted funds and unrestricted funds would have been used, based on a weighted average of the amounts.

Calculate the current yield of a bond based on its market price and coupon rate.

Differentiate between real and nominal rates of return and understand how inflation affects these rates.

Understand the relationship between bond prices and market interest rates.

Calculate the number of bonds needed to be issued to raise a certain amount of money.

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Definitions:

Electron Microscope

A type of microscope that uses a beam of electrons to create an image of the specimen with much higher resolution than a light microscope.

Selectively Permeable Membrane

A membrane that allows certain molecules or ions to pass through it by diffusion and occasionally specialized processes, crucial in maintaining the cell environment.

Osmosis

The movement of water molecules through a selectively permeable membrane from a region of lower solute concentration to one of higher concentration.

Protein

Large biomolecules, or macromolecules, composed of one or more long chains of amino acid residues, crucial for the structure, function, and regulation of the body's tissues and organs.