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Which One of the Following Methods Ensures That Firms Repay

Question 25

Multiple Choice

Which one of the following methods ensures that firms repay the principal on bonds entirely at maturity?


A) By setting up a sinking fund that receives regular sums from the firm that will be sufficient to redeem the bonds
B) By ensuring that all bonds have the same redemption date
C) By creating a limited liability company
D) By insisting that investors agree to invest in future bonds

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