A pool of money that is set aside by a corporation or government to repurchase a set amount of bonds in a set period of time is called a

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A sinking fund is a pool of money set aside by a corporation or government to repurchase a set amount of bonds in a set period of time. This provides a measure of protection for bondholders because it ensures that the issuer will have sufficient funds to repay the bonds at maturity. A redemption fund is similar to a sinking fund, but it is typically used by governments to repay outstanding debt or to cover future debt service payments. A guaranteed fund and a liquidity fund are not typically used for bond repurchases.

A Pool of Money That Is Set Aside by a Corporation