Exhibits 10.11A contain excerpts from the University of Toronto’s annual financial report for the year ended April 30, 2021.

Required 

a. Explain what it means when it states that the debentures are “senior unsecured debentures.” 

b. At what amount are these debentures carried on the University of Toronto’s balance sheet (statement of financial position)? What does this tell you in terms of whether these debentures were issued at par, a discount, or a premium? 

c. Determine the amount of interest expense that the university incurs annually on these debentures. Round to the nearest one thousand dollars. 

d. a voluntary sinking fund. Explain, in your own words, what this is and why the university has likely established it.

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UNIVERSITY OF TORONTO Consolidated Balance Sheet As at April 30 (millions of dollars) ASSETS Current Cash and cash equivalents Short-term investments at fair value (note 3) Accounts receivable (notes 3 and 17) Inventories and prepaid expenses Investments at fair value (notes 3 and 17) 2021 $ 192 1,077 173 50 1,492 5,680 2020 $ 149 1,074 219 33 1,475 4,195