CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A sinking fund requirement describes ______.
A. a commitment by the buyer to sell the fund to the purchaser at a specified price at a designated future date
B. a commitment by the seller to buy the same fund back from the purchaser at a specified price at a designated future date
C. the presence of an indenture requiring the issuer to retire a specified portion of the issue each year
Explanation: A sinking fund requirement is when an indenture requires the issuer to retire a specified portion of the issue each year.

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