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A sinking fund allows the issuer to accumulate interest expenses into a sinking fund account purchase a portion of the debt each year in the

A sinking fund allows the issuer to

  1. accumulate interest expenses into a sinking fund account

  2. purchase a portion of the debt each year in the open market or call a portion of the debt for mandatory redemption

  3. redeem an entire debt issue prior to maturity

  4. call the entire debt issue

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