To carry out the sinking fund requirements, corporations often make semi-annual or annual payments to trustees, who uses these funds to retire bonds by purchasing them in the marketplace.

Question

Quizplus · Accepted Answer

This statement is true. Corporations set up sinking funds to retire their bonds, and often make semi-annual or annual payments to trustees who are responsible for using the funds to purchase the bonds in the marketplace.

To Carry Out the Sinking Fund Requirements, Corporations Often Make