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

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AFP CTP Question Answer

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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Vendor: AFP
Product: CTP
Update on: Oct 21, 2025
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TESTED 21 Oct 2025