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    Is a Sinking Fund an Attractive Feature for Bond Investment?

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    When investing in bonds, there are a multitude of differences with risk level, time to maturity, and specific provisions, etc. One such provisional feature is known as a sinking fund. As an investor, would you consider a sinking fund provision as an attractive feature for a bond investment? Why?

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    Solution Preview

    As per xtrakter, "A sinking fund provision of a corporate bond indenture requires a proportion of the issue to be retired periodically. The entire bond issue can be liquidated by the maturity date." Sinking fund requires specific amount ...

    Solution Summary

    The solution discusses whether a sinking fund is an advantageous provisional feature to a bond or not. 150+ words with references included.