Q572
Type of provision which allows an orderly retirement of an issued bond which is classified as
A.
whole call provision
B.
super fund provision
C.
floating fund provision
D.
sinking fund provision
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Type of provision which allows an orderly retirement of an issued bond which is classified as sinking fund provision. A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt.