Question: 5 0 , 0 0 0 bonds with a 1 5 - year maturity were issued 1 0 years ago and are currently trading at

50,000 bonds with a 15-year maturity were issued 10 years ago and are currently trading at 110. The indenture contains a sinking fund provision that retires 10% of the outstanding bonds every year for the next four years (starting now). If an investor bought 500 bonds at issuance, which of the following is the best outcome for the investor this year?
A. All bonds are redeemed.
5 0 , 0 0 0 bonds with a 1 5 - year maturity were

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