Bahama Solar may issue a $10$ year maturity fixed$-$income security, which might include a sinking fund provision and either refunding or call provision.

A Describe a sinking fund provision.

$B$ Explain the impact of a sinking fund provision on:

i$)$ The expected average life of the proposed security

ii$)$ Total principal and interest payments over the life of the proposed security.

$C,$ From the investor's point of view, explain the rationale for demanding a sinking fund provision.