A strong sinking fund makes the bond riskier because it is harder for the firm to retire the debt.

Name: A strong sinking fund makes the bond riskier because it is harder for the firm to retire the debt.
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A strong sinking fund actually reduces the risk of a bond because it ensures that the issuer systematically sets aside funds to repay the bond at maturity, making it easier and more likely for the firm to retire the debt.

A Strong Sinking Fund Makes the Bond Riskier Because It