For the issuer, a sinking fund arrangement is most similar to a:

Question

Quizplus · Accepted Answer

A sinking fund arrangement is a method of retiring debt in which the issuer sets aside money periodically to redeem a portion of the outstanding bonds. This is similar to a serial maturity structure, in which the issuer retires a portion of the bonds in regular installments over time. A term maturity structure involves a single maturity date for all the bonds, while a bondholder put provision allows the bondholder to sell the bond back to the issuer at a predetermined price.

For the Issuer, a Sinking Fund Arrangement Is Most Similar