A sinking fund is a type of fund set up to pay back debt. Bond issuers may usesinking fundsto buy back issued bonds or parts of bonds prior to the maturity date of the bond. Sinking funds help attract investors and assure them that the bond issuer will not default on their payment...
What Is a Sinking Fund A sinking fund is a specific type of fund where money is either saved or put aside. It’s used to help pay off any outstanding debts or bonds that you might have. When a company issues debt, they’re going to need to pay it off at some point in the future...
A sinking fund is a special reserve set aside by companies that issue stocks and bonds to ensure that the company will be able to...
A. Debenture bonds. B. Term bonds. C. Sinking fund bonds. D. Serial bonds. 正确答案:D 分享到: 答案解析: D is corrent. The requirement is to identify the type of bond issue that will not all mature on the same date. D is corrent because a bond issue that matures in installments ...
In Sept/08 would you recommend Washington Mutual's covered bonds? What are the greatest unresolved risks? What is your opinion of Equitable Bank, and are they a good stock to invest in? Why did commercial banks pursue...
What is a sinking fund and how does it come into consideration during a bond issue? How would selling treasury stock affect the return on equity ratio? a. increase b. decrease c. no effect What are the purpose and importance of the Statement of Cash Flows?
Define what an emergency fund is. a) What is debt securitization? b) What are covered bonds? The basic motives for holding money rather than investments are the what? Why would investors purchase junk bonds? Explain the role of collateral in the credit market. Is it helpful?
Callable bonds effectively give the issuer the right to pay back the bond’s principle early. Outside of this, most callable bonds work exactly like any other investment-grade bond. That is to say, these bonds carry an interest rate, par value and maturity date, and will pay coupon payment...
A sinking fund is a means of repaying funds borrowed through abond issuethrough periodic payments to a trustee who retires part of the issue by purchasing the bonds in theopen market. Thesinking fundprovision is really just a pool of money set aside by a corporation to help repay previous ...
A sinking fund provision in a bond adds an element of doubt over whether the bond will continue to pay a return until its maturity date. That is seen as an additional risk for investors. A sinking fund call allows a bond issuer to recall a portion of its bonds, or all of them, befor...