Multiple Choice
As a part of a bond issue, a corporation makes annual payments into an account managed by a trustee for the purpose of repurchasing bonds. This arrangement is called:
A) a call provision.
B) a sinking fund.
C) a funding provision.
D) a trust maintenance fund.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q7: The price of a $1,000 face value
Q8: A positive covenant to an indenture or
Q9: Floating rate bonds are bonds with:<br>A) floating
Q10: A sinking fund is useful to bondholders
Q11: A firm wishes to issue a perpetual
Q13: A public issue of bonds approved by
Q14: Zero coupon bonds eliminate interest rate risk
Q15: The trustee's job as agent for the
Q16: Corporations typically have the right to repurchase
Q17: An income bond is unique in at