A Sinking Fund May Be Used for Each of the Following

question 77

Multiple Choice

A sinking fund may be used for each of the following EXCEPT ________.

• A)to be held on to and used to pay off the principal at maturity
• B)to call in bonds early
• C)to buy back some of the bonds over time
• D)to be used to pay off other outstanding debt issues

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Definitions:

Unilateral Contract

A contract where only one party makes a promise or undertakes a performance without requiring a reciprocal agreement from the other party.

Consideration

In contract law, consideration refers to something of value exchanged between parties, forming the basis for a contract.

Promissory Estoppel

A rule in law that prohibits an individual from retracting a pledge given to another if the latter has justifiably depended on this assurance to their harm.

Quasi Estoppel

A legal doctrine preventing a party from asserting rights or facts that contradict their past actions or statements.