Question: Consider these statements: Statement 1: When issuing debt, a company may use a sinking fund arrangement as a means of reducing the bond's credit risk.

Consider these statements: Statement 1: When issuing debt, a company may use a sinking fund arrangement as a means of reducing the bond's credit risk. Statement 2: Compared with developed markets bonds, emerging markets bonds most likely offer lower yields.

		Both statements are correct.
		Both statements are not correct.
		Only statement 1 is correct.
		Only statement 2 is correct.

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