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Re: what's a sinking fund?# Business - 商学院
b*e
1
thanks.. so what's the difference btw "setting it aside" and just
paying the bond holders that amount outright?
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r*e
2
sinking payment is just a fraction of outstanding debt. Say the firm will pay
back 1% of their outstanding debt every year.

【在 b****e 的大作中提到】
: thanks.. so what's the difference btw "setting it aside" and just
: paying the bond holders that amount outright?

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m*h
3
seems now, more popular way is just to payback some principles
at certain time.

【在 r******e 的大作中提到】
: sinking payment is just a fraction of outstanding debt. Say the firm will pay
: back 1% of their outstanding debt every year.

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