Bonds whose indentures contain a provision which requires the issuing firm to make a provision for partial early retirement of the bond issue are sinking fund bonds and _____ bonds.
A)callable bonds
B)refunded bonds
C)serial bonds
D)convertible bonds
E)zero coupon bonds

Question

Quizplus · Accepted Answer

Serial bonds are bonds that mature in installments, and their indentures often require the issuing firm to make provisions for partial early retirement of the bond issue through a sinking fund. Callable, refunded, convertible, and zero coupon bonds do not necessarily have sinking fund provisions.

Bonds Whose Indentures Contain a Provision Which Requires the Issuing