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3 A company has outstanding bonds that are covered by a sinking fund. The coupon on these bonds is currently below the YTM. The company

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A company has outstanding bonds that are covered by a sinking fund. The coupon on these bonds is currently below the YTM. The company will choose to execute the sinking fund by: redeeming the bonds at par on maturity. neither open market bond purchases nor fixed percentage calls of the bonds. buying bonds on the open market. calling a fixed percentage of the bond issue at par. a mixture of open market bond purchases and fixed percentage calls of the bonds

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