Question: 10. A sinking fund on a bond issue is a feature that: a. provides reimbursement to the bond investors from a flood or other high
10. A "sinking fund" on a bond issue is a feature that: a. provides reimbursement to the bond investors from a flood or other high water event b. provides extra security to the investors by requiring portions of the bond to be retired prior to maturity. c. allows the borrower to postpone payments of the bond until maturity d. allows the issuer of the bond to call the entire issue at par if interest rates decline
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