A Sinking Fund Is Useful to a Corporation Because

Multiple Choice

A sinking fund is useful to a corporation because:

A) the corporation does not have to worry about paying the bondholders.
B) it provides the corporation with the option to buy the bonds back 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.