Which of the Following Statements Concerning the Use of Sinking

question 82

Multiple Choice

Which of the following statements concerning the use of sinking funds to repurchase a bond issueis NOT true?

• A) Payments from the sinking fund are used to repurchase bonds.
• B) The firm makes regular payments into a sinking fund administered by a trustee over the life of the bond.
• C) The firm can reduce the amount of outstanding debt without affecting the cash flows of the remaining bonds.
• D) Bonds can be issued with a sinking fund provision or a call provision, but not both.

---

Definitions:

Conscientiousness

Refers to a personality trait characterized by organization, dependability, and a strong sense of duty.

Eight Types

This term is too vague without further context but could refer to various classification systems in psychology, such as personality types, without specifying which.

Gardner

Howard Gardner is a developmental psychologist best known for proposing the theory of multiple intelligences, which suggests that intelligence is not a single general ability but a combination of various distinct types of cognitive capabilities.

Emotional

Pertaining to one's feelings or affective states, often influencing mood, behavior, and cognitive processes.