Even Though Many Bonds Have Deferred Sinking Funds, the Sinking

question 84

Multiple Choice

Even though many bonds have deferred sinking funds, the sinking fund has the following effects on bondholders:
I.provides extra protection to bondholders as both an early warning system and perhaps some collateral cash;
II.provides an option to the firm to buy bonds at the lower of market or face value;
III.puts the bondholders at added risk due to potential inability to meet sinking fund payments

• A)I and II only
• B)III only
• C)II only
• D)II and III only

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Definitions:

Erection

The physiological phenomenon of the penis becoming enlarged and firm, primarily in response to sexual arousal.

Orgasm

The peak of sexual arousal characterized by intense pleasure and followed by release of sexual tensions.

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Genital Swab Culture

A diagnostic test that involves collecting a sample from the genital area to detect infections.