A trustee of a split-interest trust has to allocate income to the income beneficiary and principal to

Question:

A trustee of a split-interest trust has to allocate income to the income beneficiary and principal to the remainder men. The trustee recently used $20 million of the trust's assets to purchase a zero-coupon bond in a very safe company. The effective annual yield on this bond is 8%. Zero-coupon bonds are purchased at a deep discount and provide the full to an investor in cash on the date of the bond.
a. As the accountant for this split-interest trust, would it be important for you to read the trust document? Why?
b. Do you have to do any research to perform your task properly?
c. How should the annual appreciation in the value of this bond be accounted for?
d. How much cash income will this bond generate for the income beneficiary in the first year of ownership?
e. Has the trustee breached a fiduciary duty?
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