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A company issued a bond with a sinking fund feature. Several years later, the bond traded at on the secondary market at a significant premium

A company issued a bond with a sinking fund feature. Several years later, the bond traded at on the secondary market at a significant premium to par value due to an increase in the company's credit rating. Which statement is correct? The company must buy back a certain amount of the issue each year. The company is not obligated to repurchase any part of the issue prior to maturity because the bond is trading at

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