Which of the following statements regarding Sinking Fund Provision is most correct?

Select one:

a. A firm will choose to call back bonds for redemption at par value if the bonds are traded at a discount.

b. In general, sinking fund bonds are issued with lower coupon rate than otherwise similar bonds without sinking funds.

c. On balance, bonds that have a sinking fund are regarded as being riskier than those without such a provision.

d. A sinking fund provision gives the issuer the right to sell bonds under specified terms prior to the normal maturity date.

e. A firm will choose to buy the required bonds on the open market if the bonds are treaded at a premium.