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Can a firm experience diminishing returns in the long run?
Sinking Fund Provisions
A requirement that a borrower regularly set aside funds to repay a debt before or at maturity, often used in conjunction with bonds.
Bond Indenture
The formal agreement between a bond issuer and bondholders, detailing the terms of the bond such as interest rates, maturity date, and other conditions.
Yield To Maturity
The total return anticipated on a bond if held until it matures, considering all interest payments made at set intervals and the principal or face value.
Bond Indenture
A legal document specifying the rights, duties, and obligations of both the issuing company and the bondholders.
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