AFP
CTP · Question #452
(Topic 5) A sinking fund is primarily used for which of the following purposes?
The correct answer is A. To ensure that adequate funds are available to redeem the bond issue. See the full explanation below for the reasoning.
Question
- (Topic 5)
A sinking fund is primarily used for which of the following purposes?
Options
- ATo ensure that adequate funds are available to redeem the bond issue
- BTo provide interest distributions to bondholders
- CTo provide periodic principal reductions over the life of the bond
- DTo pay bond administration costs
How the community answered
(17 responses)- A82% (14)
- C12% (2)
- D6% (1)
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