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Monica [59]
3 years ago
8

What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?

Business
1 answer:
stellarik [79]3 years ago
3 0

Answer:

c. Sinking fund

Explanation:

The  Sinking fund is the fund that is used to explain the account in the case of the trustee managers of a bond for a purpose of redeeming them early. It could be performed in a periodically that aside the money for debt payment or for the asset replacement

Therefore as per the given situation, the option c is correct

And, the same is to be considered

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accounting rate of return = average net profit per year / average investment = $15,000 / $60,000 = 0.25 = 25%

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