The accumulation and investment of money over a period of years that provides the amount necessary for the redemption of a bond issued at its maturity is called a sinking fund.

Question

Quizplus · Accepted Answer

This statement is true. A sinking fund is established to ensure that the funds necessary for bond redemption are available at maturity. Money is accumulated and invested over time to generate the required amount.

The Accumulation and Investment of Money Over a Period of Years