the key point is that sinking fund provision is the bond owner's(investor's)advantage,not the issuer's. Since with the sinking fund provision,the issuer is obliged to repay the principal through a series of payments over the life of the issue, decreasing the risk that the issuer cannot repay all of the principal at maturity, which benefit the owner(investor).
a sinking fund provision is really just a pool of money set aside by a corporation to help repay a bond issue. Typically, bond agreements (called indentures) require a company to make periodic interest payments to bondholders throughout the life of the bond, and then repay the principal amount of the bond at the end of the bond's lifespan.
楼上的理解是对的:0
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