Sinking fund provision
Sinking fund provision is a provision in a bond contract that requires the issuer to retire a portion of the bond issue each year.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Sinking fund provision. A provision in a bond contract that requires the issuer to retire a portion of the bond issue each year.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
