Question: When a bond indenture includes a sinking fund provision, Multiple Choice None of the options are true. firms must establish a cash fund for future

When a bond indenture includes a sinking fund provision,

Multiple Choice

None of the options are true.

firms must establish a cash fund for future bond redemption.

bondholders may lose because their bonds can be repurchased by the corporation at below

-

market prices.

bondholders always benefit because principal repayment on the scheduled maturity date is guaranteed.

firms must establish a cash fund for future bond redemption, and bondholders always benefit because principal repayment on the scheduled maturity date is guaranteed.

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