77.4k views
5 votes
A sinking fund is managed by a trustee for which purposes?

1 Answer

6 votes

Answer:

Early bond redemption

Step-by-step explanation:

Sinking fund: It is money reserved to pay the debt of bond issued to raise funds. Money is saved each month to debt in future. It is a strategic step taken by corporate to bear the emergency expense of the future. The term sinking fund is referred to show the paid off debt and decreasing the level of debt of the company. It is managed with the purpose of early bond redemption.

User Nuno Aniceto
by
5.0k points