If a Bond Issue Has a Sinking Fund Provision Then

question 44

Multiple Choice

If a bond issue has a sinking fund provision then

• A) the corporation makes payments,based upon a preconceived schedule,to a trustee who uses these funds to retire bonds by purchasing them in the marketplace.
• B) the indenture allows the value of the bonds to fall to a pre-identified price before default occurs.
• C) a certain portion of the interest payments on the bond are used to retire bonds by purchasing them in the marketplace.
• D) none of the above.

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Definitions:

Written Question

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FRCP 26

Refers to Rule 26 of the Federal Rules of Civil Procedure which pertains to the duty to disclose, discovery scope, and limits, and the basis for discovery.

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In legal proceedings, a pre-trial procedure where parties to the lawsuit request, gather, and exchange information relevant to the case to prepare for trial.