- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 4. Fixed-Income Markets for Corporate Issuers
- Subject 1. Short-Term Funding Alternatives
CFA Practice Question
A sinking fund arrangement is a way to reduce ______.
B. credit risk
C. inflation risk
A. reinvestment risk
B. credit risk
C. inflation risk
Correct Answer: B
Sinking funds provide extra protection to bondholders.
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