63.9k views
4 votes
A "sinking fund call" is a(n): A mandatory call B extraordinary mandatory call C optional call D extraordinary optional call

User Khael
by
7.1k points

1 Answer

4 votes

Answer:

A

Step-by-step explanation:

A sinking fund call is a provision that allows a bond issuer the opportunity to buy outstanding bonds from bondholders at a predetermined rate, using money known as a sinking fund from the issuer's earnings saved specifically for security buybacks. Sinking fund calls are mandatory

Mandatory redemption is a call provision that requires an issuer to redeem bonds before their stated maturity date

User DixonD
by
7.2k points