Which of the following statements is most likely to be true?

a) Sinking Fund allows the company to repurchase or "call" part or all of the bond issue at stated price over a specified period.

b) All of the statements are correct.

c) In the event of default, holders of subordinated debt have the highest seniority over other specified creditors.

d) A zero coupon bond can be sold more than its face value.

e) The part of loan agreement that limits certain actions an issuing company might otherwise wish to take during the term of the loan is called " Protective Covenants".

Answer rating: 100% (QA)

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