Multiple Choice
Which one of the following statements concerning sinking funds is correct?
A) Bond issuers must fund a sinking fund at the time the bonds are issued.
B) Sinking funds must include at least one "balloon payment."
C) Sinking funds must be funded annually, starting on the issue date.
D) Sinking funds may be used to purchase bonds in the open market.
E) Sinking funds can be used only to call bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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