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A sinking fund is used by firms to retire some of its outstanding debt every year. Which of the following is a way that a
A sinking fund is used by firms to retire some of its outstanding debt every year. Which of the following is a way that a sinking fund may operate?
A. | The firm may buy the bonds at a special call price stipulated in the bond's sinking fund provision. | |
B. | All of these answers | |
C. | The firm may repurchase the bonds at the current market price or the call price, whichever is lower. | |
D. | The firm may repurchase the bonds in the open market. |
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