Would a bond be more or less desirable if you learned that it has a sinking fund
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Would a bond be more or less desirable if you learned that it has a sinking fund that requires the company to redeem, say, 10% of the original issue each year beginning in 2030, either through open market purchases or by calling the redeemed bonds at par? How would it affect your answer if you learned that the bond was selling at a high premium, say, 130% of par, or at a large discount, say, 70% of par?
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Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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