Which of the Following Statements Is Correct

Which of the following statements is correct?

A) If a company is retiring bonds for sinking fund purposes it will buy back bonds on the open market when the coupon rate is less than the market interest rate.
B) A bond sinking fund would be good for investors if interest rates have declined after issuance and the investor's bonds get called.
C) Mortgage bonds have less default risk than debentures.
D) Both a and c are correct.
E) All of the statements above are correct.

Correct Answer:

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