Ask Question
BusinessBusiness
25 October, 06:28

Sinking fund bonds: Multiple Choice Require the issuer to set aside assets at specified amounts to retire the bonds at maturity. Decline in value over time. Require equal payments of both principal and interest over the life of the bond issue. Are bearer bonds. Are registered bonds.

+1
Answers (1)
  1. 25 October, 06:34
    0
    Require the issuer to set aside assets at specified amounts to retire the bonds at maturity.

    Explanation:

    Sinking fund is defined as amounts of money that are set aside to pay off a bond or debt. When a company incurs a debt it will take a large allocation of revenue to offset it. So they start setting aside sinking funds to cushion the hardship of repayment.

    This is a way to avoid lump sum payment at bond maturity.

    Sinking funds gives some level of security and reduces default risk, so interest rate is usually lower. Cash flow and profitability is increased
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sinking fund bonds: Multiple Choice Require the issuer to set aside assets at specified amounts to retire the bonds at maturity. Decline in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Aneta sold an apartment building for $713,470 in 2019. She purchased the building in 2013 for $600,000 and has taken $151,806 in depreciation on the building.
Answers (1)
Which of the following is NOT an example of advertising media? a. Anything with a logo on it. c. Posters on the sides of buses. b. Junk mail through regular mail or email. d. None of the above.
Answers (1)
On January 1, 2018 , Bryant , Inc. decides to invest in 3,750 shares of Farrier stock when the stock is selling for $ 16 per share. On August 1, 2018 , Farrier paid a $ 0.70 per share cash dividend to stockholders.
Answers (1)
Imagine that your money is a little tight this month and you have two credit card bills to pay. One card is a Visa from a major bank; the other a card from a regional department store like Macy's. What should you do?
Answers (1)
Acort Industries owns assets that will have an 80% probability of having a market value of $50 million in one year. There is a 20% chance that the assets will be worth only $20 million.
Answers (1)
New Questions in Business
A company has a fiscal year-end of december 31: (1) on october 1, $12,000 was paid for a one-year fire insurance policy; (2) on june 30 the company lent its chief financial officer $10,000; principal and interest at 6% are due in one year;
Answers (1)
Marquese is making 10 pounds of trail mix from raisins and nuts. Raisins cost $3.45 per pound, and nuts cost $7.95 per pound. How many pounds of raisins and how many pounds of nuts should marquese use for the trail mix to cost him $6.96 per pound?
Answers (2)
Ten Pins Manufacturing has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding.
Answers (1)
The higher the price of an antique, the greater people's expectation that the object is rare. That, in turn, makes the antique appear more valuable. If the statements above are correct, then offering an antique for sale at a bargain price:
Answers (1)
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual
Answers (1)
Home » Business » Sinking fund bonds: Multiple Choice Require the issuer to set aside assets at specified amounts to retire the bonds at maturity. Decline in value over time. Require equal payments of both principal and interest over the life of the bond issue.
Sign Up Forgot Password?