A _________ is an account where payment are kept and used for the scheduled redemption of outstanding bonds.

Question

Quizplus · Accepted Answer

A sinking fund is a type of account where payments are made periodically to ensure that funds are available for the scheduled redemption of outstanding bonds. This helps to mitigate the risk associated with issuing bonds and provides investors with added security. The funds may be used to either retire bonds before their maturity or to redeem them on schedule.

A _________ Is an Account Where Payment Are Kept and Used