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Author Question: Which of the following statements concerning the use of sinking funds to repurchase a bond issue is NOT true? (Read 153 times)

Pineapplelove6

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Which of the following statements concerning the use of sinking funds to repurchase a bond issue is NOT true?
◦ The firm makes regular payments into a sinking fund administered by a trustee over the life of the bond.
◦ Bonds can be issued with a sinking fund provision or a call provision, but not both.
◦ The firm can reduce the amount of outstanding debt without affecting the cash flows of the remaining bonds.
◦ Payments from the sinking fund are used to repurchase bonds.


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Marked as best answer by Pineapplelove6 on Jul 9, 2019

asdfghjkl;

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