Which statement regarding sinking funds is least l
Which statement regarding sinking funds is least likely correct?
A. Sinking fund provisions require the retirement of a portion of a bond issue in specified amounts prior to the maturity date.
B. Sinking fund redemptions can be accomplished by making cash payment to the trustee who will then retire the required proportion of the bonds.
C. If rates have declined since the bond was issued, companies are likely to choose to retire a proportion of the debt through the delivery of securities.
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2024-11-14 23:59:43
Ans:C;
C is least likely correct. Companies would retire through the delivery of securities of rates have gone up, not down.
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