Which of the following is used to set aside money to buy back some of the bonds in a bond issue each year?

Question

Quizplus · Accepted Answer

A sinking fund is used to set aside money to buy back some of the bonds in a bond issue each year. A capital fund is a fund that is set aside to finance long-term projects or investments. A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors. A bond fund is a mutual fund that invests in bonds. None of these options specifically address the setting aside of money to repurchase bonds, except for the sinking fund.

Which of the Following Is Used to Set Aside Money