Sinking Funds Reduce the Average Life of a Bond and Thereby

question 82

True/False

Sinking funds reduce the average life of a bond and thereby reduce the risk of a default.

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Definitions:

Z Score

A quantifier that assesses a value's deviation from the dataset's mean, represented in the scale of standard deviations.

X-axis

The horizontal axis in a coordinate plane, often used to represent the independent variable in a graph.

Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of numerical values.

Distribution

In statistics, it refers to the way in which data or values are spread out or distributed across a range of possibilities.