The purpose of a sinking fund is to set aside resources for a substantial debt payment due at maturity.

Name: The purpose of a sinking fund is to set aside resources for a substantial debt payment due at maturity.
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A sinking fund is specifically designed to set aside funds for a future debt payment that will come due at maturity. This helps to ensure that the necessary funds are available without having to rely on other sources of financing.

The Purpose of a Sinking Fund Is to Set Aside