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Suppose Gonzale's indenture included a sinking fund provision that required the company to retire one-tenth of the bonds each year. Would this provision raise or

Suppose Gonzale's indenture included a sinking fund provision that required the company to retire one-tenth of the bonds each year. Would this provision raise or lower the interest rate required? How would the sinking fund operate? Why might Gonzale's investors require it to use a sinking fund? Would it make sense to include a sinking fund?

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