Which of the following statement about sinking fund is correct?

	A.	All corporate bonds are required to have a sinking fund provision.
	B.	Firms are required to buy back a specific percentage of the issue each year.
	C.	A default on the sinking fund requirement may lead to bankruptcy.
	D.	It is set up to ensure repayment of principal.
	E.	All of the above

Which of the following statement is incorrect?

	A.	Restrictive covenants can limit the actions of managers of a borrowing corporation.
	B.	Some corporate bonds contain a call provision.
	C.	Bonds issued by the U.S. Treasury carry no default risk.
	D.	Convertible bonds are issued in order to control the number of bonds outstanding in the future.
	E.	All of the above statements are correct.