Sinking Fund Arrangements Are Least Apt to Contain Which One

question 34

Multiple Choice

Sinking fund arrangements are least apt to contain which one of these requirements?

• A)A deferred provision for the first few years
• B)A one-time repayment of the entire principal and interest at maturity
• C)A balloon payment
• D)Equal payments of principal over the life of the bond
• E)Sufficient payments over the bonds' life to retire the entire bond issue

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Definitions:

Social Security Tax

is a tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors.

Regressive Tax

Falls more heavily on the poor than on the rich; for example, Social Security tax.

Transfer Payment

Payments made by the government to individuals or other entities without the exchange of goods or services, such as welfare or social security.

Sales Taxes

Taxes imposed on the sale of goods and services, typically calculated as a percentage of the purchase price, paid by the consumer at the point of sale.