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
Did you know? You can earn $20 for every friend you invite to Studypool!