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Consider these statements: Statement 1: When issuing debt, a company may use a sinking fund arrangement as a means of reducing the bond's credit risk.
Consider these statements: Statement 1: When issuing debt, a company may use a sinking fund arrangement as a means of reducing the bond's credit risk. Statement 2: Compared with developed markets bonds, emerging markets bonds most likely offer lower yields.
| Both statements are correct. | |
| Both statements are not correct. | |
| Only statement 1 is correct. | |
| Only statement 2 is correct. |
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