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?© BrainMass Inc. brainmass.com July 21, 2018, 9:27 pm ad1c9bdddf
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 ...
The solution discusses whether a sinking fund is an advantageous provisional feature to a bond or not. 150+ words with references included.