If a bond has a sinking fund provision then the actual maturity of the bond will probably be

Question

Quizplus · Accepted Answer

If a bond has a sinking fund provision, the issuer is required to set aside money into a separate account that will be used to retire the bond. This means that a portion of the principal amount will be paid off prior to the stated maturity date, resulting in an actual maturity that is less than the stated maturity. Therefore, choice (C) is the correct answer.

If a Bond Has a Sinking Fund Provision Then the Actual