Which of the following provisions of a bond indenture is designed to ease the burden of...

Which of the following provisions of a bond indenture is designed to ease the burden of principal repayment by spreading it out over several years?

a. pay in kind feature

b. sinking fund

c. convertible feature

d. callable feature

Expert Solution

Ans b. sinking fund

Sinking fund provisions of a bond indenture is designed to ease the burden of principal repayment by spreading it out over several years. A provision in some bond indenture require the issuer to put money aside to repay bondholders at maturty.

jeff jeffy answered 1 year ago

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