What Does It Mean When a Bond Has a Sinking Fund?

Content Sinking fund vs. Emergency fund BUS202: Principles of Finance 4: Debt Retirement and Amortization What is a Sinking Fund? Accounting for Retirement of Bonds Sinking Fund Definition, Types, and Real-World Example Accounting Principles II First and the foremost benefit, which we have discussed above is that the by sinking funds, the likelihood of default