13) Payments into a sinking fund are always made when? A) at the end of each per

Business & Finance
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13) Payments into a sinking fund are always made when? 

A) at the end of each period 

B) when the funds are available 

C) at the beginning of each period 

D) lump sum at the beginning of the sinking fund

Apr 26th, 2015

A) at the end of each period

The point of a sinking fund is to funnel money into a separate account to meet the future bond obligations. This is a requirement for some bonds, so it's not just done when extra funds are available, or a lump sum at the beginning--if we had the money to do a lump sum at the beginning, we wouldn't have sold bonds. 

Apr 26th, 2015

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Apr 26th, 2015
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Apr 26th, 2015
Dec 9th, 2016
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