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    Financial Accounting Information for Decisions Study Set 3
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    Exam 10: Reporting and Analyzing Long-Term Liabilities
  5. Question
    Sinking Fund Bonds Reduce the Bondholder's Risk by Requiring the Issuer
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Sinking Fund Bonds Reduce the Bondholder's Risk by Requiring the Issuer

Question 45

Question 45

True/False

Sinking fund bonds reduce the bondholder's risk by requiring the issuer to create a fund of assets to repay the bonds at maturity.

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