A Sinking Fund May Be Useful to a Corporation Because

Multiple Choice

A sinking fund may be useful to a corporation because

A) the corporation does not have to worry about paying the bondholders.
B) it may provide the corporation with the option to acquire the bonds at the lower of face value or market price.
C) the payments to the sinking fund are not necessary when the firm is in financial difficulty.
D) they are simple and easy to monitor.