Question: When a bond indenture includes a sinking fund provision, Multiple Choice firms must establish a cash fund for future bond redemption, and bondholders always benefit

When a bond indenture includes a sinking fund provision,
Multiple Choice
firms must establish a cash fund for future bond redemption, and bondholders always benefit because principal repayment on the
scheduled maturity date is guaranteed.
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.
None of the options are true.
When a bond indenture includes a sinking fund provision, Multiple Choice

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