Which of the Following Statements Is Most Correct

question 8

Multiple Choice

Which of the following statements is most correct?

• A) Sinking fund provisions do not require companies to retire their debt; they only establish "targets" for the company to reduce its debt over time.
• B) Sinking fund provisions sometimes work to the detriment of bondholders - particularly if interest rates have declined over time.
• C) If interest rates have increased since the time a company issues bonds with a sinking fund provision, the company is more likely to retire the bonds by buying them back in the open market, as opposed to calling them in at the sinking fund call price.
• D) Statements a and b are correct.
• E) Statements b and c are correct.

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Definitions:

Temporary Storage Space

Space in a computing device used to store data that is needed for short periods, often cleared after its purpose is served.

Primary Circuit Board

The main printed circuit board (PCB) in a computer or electronic device, which houses the CPU, memory, and other critical components.

ALU

Arithmetic Logic Unit, a critical component of a computer's CPU that performs arithmetic and logical operations.

Physical Memory

The actual hardware that stores data on a computer, such as RAM (Random Access Memory) and ROM (Read-Only Memory).