8. Which statements about bond sinking funds is not true?

A. Paying debt off early through a sinking fund costs a company interest expense but puts the company on firmer financial footing.

B. To lessen its risk of being short on cash ten years from now, the company may create a sinking fund,

C. A sinking fund is maintained by companies for bond issues, and is money set aside or saved to pay off a debt or bond.

D. Bonds issued with sinking funds are lower risk since they are backed by the collateral in the fund, and therefore carry lower yields.