Which of the following statements about sinking fund is NOT true? A Sinking fund provision facilitates the orderly retirement of the bond issue. B A company would prefer to use sinking fund to call...



Which of the following statements about sinking fund is NOT true?


























A

Sinking fund provision facilitates the orderly retirement of the bond issue.



B

A company would prefer to use sinking fund to call bond if interest rate is below the coupon rate.



C

A company would use sinking fund to call bond if interest rate is well above coupon rate.



D

It is a good strategy for a firm to use its sinking fund to call bond if bond sells at a big premium.





Jun 05, 2022
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