As a part of a bond issue, a corporation makes annual payments into an account managed by a trustee for the purpose of repaying bonds.This arrangement is called a:

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A sinking fund is a type of account that a corporation establishes to set aside money to repay its bond issue. The corporation makes annual payments into the sinking fund, and the trustee manages the fund on behalf of the bondholders. The use of a sinking fund can make the bond issue more attractive to investors because it provides a measure of protection against default.

As a Part of a Bond Issue, a Corporation Makes