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AFP CTP Question # 178 Topic 18 Discussion

CTP Exam Topic 18 Question 178 Discussion:
Question #: 178
Topic #: 18

A sinking fund is primarily used for which of the following purposes?


A.

To ensure that adequate funds are available to redeem the bond issue


B.

To provide interest distributions to bondholders


C.

To provide periodic principal reductions over the life of the bond


D.

To pay bond administration costs


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