Question

In: Finance

An account managed by the bond trustee for early bond redemption payments is called a: a....

An account managed by the bond trustee for early bond redemption payments is called a:

a.

Call provision.
b.

Sinking fund.
c.

Deed in trust account.
d.

Collateral payment account.
e.

Par value fund.

Solutions

Expert Solution

Ans b. Sinking Fund

An account managed by the bond trustee for early bond redemption payments is called a Sinking Fund.

A Sinking fund is a fund containing money set aside to pay debt or bond. A company makes sinking fund to help soften the hardship to a large outflow of revenue.

jeff jeffy answered 2 years ago
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