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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 Summary

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

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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 ...

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