11. Sinking funds (S25.1) For each of the following sinking funds, state whether the fund increases or

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11. Sinking funds (S25.1) For each of the following sinking funds, state whether the fund increases or decreases the value of the bond at the time of issue (or whether it is impossible to say):

a. An optional sinking fund operating by drawings at par.

b. A mandatory sinking fund operating by drawings at par or by purchases in the market.

c. A mandatory sinking fund operating by drawings at par.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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