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Sinking fund bonds:Multiple ChoiceDecline in value over time.Are bearer bonds.Require equal payments of both principal and interest over the life of the bond issue.Are registered bonds.Require the issuer to set aside assets to pay bonds at maturity.

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Sinking fund bonds:Multiple ChoiceDecline in value over time.Are bearer bonds.Require equal payments of both principal and interest over the life of the bond issue.Are registered bonds.Require the issuer to set aside assets to pay bonds at maturity.

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Solution

The correct answer is: Require the issuer to set aside assets to pay bonds at maturity.

A sinking fund bond is a type of bond that requires the issuer to make periodic payments into a sinking fund. This fund is then used to repay the bondholders at maturity. The purpose of this is to reduce the risk to the bondholders and to prevent the issuer from defaulting on the repayment. The issuer sets aside assets over time to ensure they have enough to pay back the bondholders when the bonds mature.

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