Although Bond Principal Is Technically Not Repaid Until Maturity, Sinking

question 3

Multiple Choice

Although bond principal is technically not repaid until maturity, sinking funds reduce bondholder risk by requiring the borrower to make periodic payments to a bank for principal retirement. The same can be accomplished by:

• A)randomly calling in bonds for earlier retirement.
• B)issuing serial bonds which spread the principal repayment over a number of years.
• C)Either of the above
• D)None of the above

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Definitions:

Quick Intervening

The act of promptly addressing issues or crises to mitigate harm or prevent the worsening of a situation, often crucial in emergency or therapy situations.

Terminating

The process of ending a professional relationship or intervention in a thoughtful and structured manner.

Summarizing

Summarizing involves condensing the main ideas or arguments of a larger text or conversation into a brief, concise overview for clarity and understanding.

Coping With Relapse

Strategies and methods employed to deal with the recurrence of symptoms or return to previous negative behaviors after a period of improvement or recovery.