Which One of the Following Statements Concerning Sinking Funds Is

question 113

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 only be used to call bonds.

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