Which of the Following Possible Provisions of a Bond Indenture

question 74

Multiple Choice

Which of the following possible provisions of a bond indenture is designed to ease the burden of principal repayment by spreading it out over several years?

• A) Callable feature
• B) Convertible feature
• C) Subordination clause
• D) Sinking fund

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Definitions:

Operating Activities

The section of the cash flow statement that reports the cash generated or used through the normal operations of a business, including receipts from sales of goods and services.

Form 10-K

The annual report that publicly traded companies must file with the SEC.

Securities & Exchange Commission

A U.S. government agency responsible for enforcing federal securities laws, regulating the securities industry, and overseeing the stock and options exchanges.

Publicly Traded Companies

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