Sinking fund bonds require the issuer to make annual payments into a sinking fund.

Name: Sinking fund bonds require the issuer to make annual payments into a sinking fund.
Brand: Quizplus
Rating: 4.9 (26 reviews)

Question

Quizplus · Accepted Answer

Sinking fund bonds require the issuer to make annual payments into a sinking fund, which is a fund set aside specifically for the purpose of retiring the bond at maturity. This helps to reduce the risk for investors by ensuring that there will be sufficient funds available to repay the bondholders when the bond reaches maturity.

Sinking Fund Bonds Require the Issuer to Make Annual Payments