Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 15, Problem 9CC
Summary Introduction

Bond:

A bond can be defined as fixed income investment in which an investor gives money to a firm or business (private or governmental) in the form of loan that borrows the money for a particular stated period of time at a fixed or a variable rate of interest. They are used by firms, state, and sovereign governments for the purpose of raising funds and financing different projects and processes. The owners of bonds are called as debt holders or creditors of the issuer of the bonds.

Sinking fund:

A fund in which money is added regularly for ensuring confidence to the investor that the payments that have been promised will be made and used to redeem debt securities or preferred stock issues.

To determine:

The concept of a sinking fund.

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BIG Problem with Bond Investing Today!!!; Author: Learn to Invest - Investors Grow;https://www.youtube.com/watch?v=1ScT15of0Vo;License: Standard Youtube License