Question: When issuing debt, a company may use a sinking fun arrangement as a means of reducing: Interest rate risk none of the answers listed here
When issuing debt, a company may use a sinking fun arrangement as a means of reducing:
| Interest rate risk | none of the answers listed here |
| inflation risk | default risk |
I thought the answer was credit risk, but that is obviously not an option.
Please explain the correct answer, please explain why the other options are incorrect. Thank you in advance!
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
