Which One of the Following Statements Concerning Sinking Funds Is

question 108

Multiple Choice

Which one of the following statements concerning sinking funds is correct?

• A)Bond issuers must fund a sinking fund at the time the bonds are issued.
• B)Sinking funds must include at least one "balloon payment."
• C)Sinking funds must be funded annually, starting on the issue date.
• D)Sinking funds may be used to purchase bonds in the open market.
• E)Sinking funds can be used only to call bonds.

---

Definitions:

Federal Government

A system of government where powers are divided between a central, national government and various regional governments.

Formerly Enslaved

Individuals who were once subject to slavery but have since been emancipated or released from bondage.

Sea Islands Experiment

An early Reconstruction initiative in the 1860s aimed at redistributing land on the Sea Islands off the coast of South Carolina to newly freed slaves.

Ten-Percent Plan

A Reconstruction plan proposed by President Abraham Lincoln in 1863, suggesting that a Southern state could be readmitted into the Union once 10% of its voters swore an oath of allegiance to the Union.