Question

In: Finance

For bonds with _________ , bond issuers are required to retire a certain percentage of bonds...

For bonds with _________ , bond issuers are required to retire a certain percentage of bonds each year.

call provision

conversion

sinking fund

speculative grades

Solutions

Expert Solution

SINKING FUND provision in the bond will be requiring the bond issuer to retire a certain percentage of the bond every year and they will be trying to reduce their exposure. Sinking fund will be fund which is prepared to retire the debt annually.

All the other options are false.

Correct answer will be option (C) sinking fund.


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