The Purpose of a Bond Sinking Fund Is To

question 85

Multiple Choice

The purpose of a bond sinking fund is to:

• A)accumulate funds needed to pay the tax liability on the bond proceeds.
• B)accumulate funds to pay the regular interest payments.
• C)hold the bond proceeds until the funds need disbursed.
• D)repay bonds early either through purchases or calls.
• E)repay bondholders from a trust fund if the issuer defaults.

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Definitions:

Acute Stress

A type of stress response that emerges quickly in reaction to a specific event or situation and usually dissipates soon after.

Posttraumatic Stress Disorder

A psychological condition resulting from direct exposure to or witnessing a traumatic event, leading to recurrent nightmares, flashbacks, and intense anxiety.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool used by mental health professionals to diagnose and classify mental disorders.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological changes such as increased heart rate and muscle tension.