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Sinkable Bond

Sinkable Bond Definition

Is a special type of bond that a company will issue that is backed by a sinking fund, which sets aside money on a consistent basis in order to ensure investors that principal and interest payments will be paid out as promised.  If a company issues sinking bonds, it is then required to having matching funds in their sinking fund to cover the issued bonds. 


Additional meaning of Sinkable Bond:
These bonds are considered a low risk bond and therefore are usually offer low interest payments.
RELATED CATEGORIES
Bonds



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