A sinking-fund provision is a requirement that the issuing firm retire a certain amount of the bond issue each year.

Name: A sinking-fund provision is a requirement that the issuing firm retire a certain amount of the bond issue each year.
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A sinking-fund provision is indeed a requirement for the issuing firm to retire a certain amount of the bond issue each year, ensuring that the principal amount is gradually paid off before the bond matures, reducing the risk of default.

A Sinking-Fund Provision Is a Requirement That the Issuing Firm