Question: 17. IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value, or the company can

17. IBM issues bonds with a sinking fund provision that the

17. IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value, or the company can buy the required bonds on the open market. IBM will choose to call back bonds for redemption at par value if the bonds are traded at in the market. A) $850 B) $990 C) $949 D) $956 E) $1053

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