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

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

B) In general, sinking fund bonds are issued with lower coupon rates than otherwise similar bonds without sinking funds.

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

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

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