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23) a) What are the disadvantages of investing in a callable bond? b) What is the advantage to the issuer of issuing a callable bond?

23) a) What are the disadvantages of investing in a callable bond?

b) What is the advantage to the issuer of issuing a callable bond?

c) What is a sinking fund requirement in a bond issue?

d) A sinking fund provision in a bond issue benefits the investor. Do you agree with this statement?

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