Search results
17 gru 2023 · A sinking fund is a means of repaying funds borrowed through a bond issue through periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market.
A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt.
13 cze 2024 · A sinking fund is an account containing money set aside to pay off a debt or bond. Sinking funds may help pay off the debt at maturity or assist in buying back bonds on...
30 kwi 2024 · A sinkable bond is a type of debt that is backed by a fund set aside by the issuer. The issuer reduces the cost of borrowing over time by buying and retiring a portion of the...
8 lut 2024 · A bond sinking fund is a special account that a bond issuer sets up to accumulate funds for the repayment of a specific bond issue or a portion of it. The issuer makes periodic payments into the sinking fund, which are then used to buy back some of the bonds on the open market or to redeem them at maturity.
Bond sinking funds are a way of setting aside money to pay off the principal amount of a bond issue before it matures. This reduces the risk of default and lowers the interest rate for the issuer. Bond sinking funds can also benefit the investors, as they provide a steady stream of income and a guarantee of repayment.
1 paź 2019 · A sinking fund is a part of a bond indenture or preferred stock charter that requires the issuer to regularly set money aside in a separate custodial account for the exclusive purpose of redeeming the bonds or shares. How does a Sinking Fund work?
