What is a sinking fund covenant? Sinking funds have both positive and negative characteristics for bondholders. Why?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:03 AM

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Sinking funds have both positive and negative characteristics for bondholders. Why?
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What is a sinking fund covenant? Sinking funds have both positive and negative characteristics for bondholders. Why?

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A sinking fund covenant is a provision in a bond indenture that requires the issuer to set aside funds periodically to retire a portion of the bonds p...View the full answer

Corporate Finance

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