The Feature in a Bond Indenture That Requires Systematic Retirement

question 70

Multiple Choice

The feature in a bond indenture that requires systematic retirement of the bond issue is a

• A) planned call provision.
• B) sinking fund provision.
• C) forced conversion provision.
• D) mandated redemption provision.

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Definitions:

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Shut Down

The cessation of operations, often temporarily, by a business or organization.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Marginal Costs

The added cost of producing one additional unit of a product or service.