Why is call provision advantageous to a bond issuer

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Reference no: EM131460501

1. Why is a call provision advantageous to a bond issuer? When would the issuer be likely to initiate a refunding call?

2. Are securities that provide for a sinking fund more or less risky from the bondholder's perspective than those without this type of provision? Explain.

Reference no: EM131460501

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