Some Corporate Bonds Have Sinking Fund Provisions or Call Provisions

question 68

Multiple Choice

Some corporate bonds have sinking fund provisions or call provisions that:

• A)reset the terms of the bond.
• B)make the bond secured.
• C)allow the investors to convert the bond into shares.
• D)require that the bond issuer provide funds to a trustee to retire a specific dollar amount (face value amount)of bonds each year.

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Definitions:

Buyers

Individuals or entities that acquire goods or services in exchange for monetary payment.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Excise Tax

A tax charged on specific goods, such as tobacco and alcohol, typically imposed by the government to regulate or discourage their consumption.