4 min read
What Does It Mean When a Bond Has a Sinking Fund?
4 min readA sinking fund requires regular payments toward the bond’s principal, ensuring timely repayment. It lowers the risk of default because the debt is repaid gradually over time. Commonly found in corporate and municipal bonds, it helps issuers manage repayment effectively. Bonds with sinking funds often offer lower interest rates due to reduced risk. This […]Continue reading "What Does It Mean When a Bond Has a Sinking Fund?"