Sinking fund bonds:A) Require the issuer to set aside assets to pay the bonds at maturity.B) Require equal payments of both principal and interest over the life of the bond issue.C) Decline in value over time.D) Are registered bonds.E) Are bearer bonds.

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Robert Roelofs · Accepted Answer

Final Answer : A, Explanation :  Sinking fund bonds require the issuer to set aside assets to pay the bonds at maturity, ensuring that there will be adequate funds to pay off the bondholders. This helps to mitigate the risk of default and can make these bonds more attractive to investors.

Sinking fund bonds:

A) Require the issuer to set aside assets to pay the bonds at maturity.
B) Require equal payments of both principal and interest over the life of the bond issue.
C) Decline in value over time.
D) Are registered bonds.
E) Are bearer bonds.

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