Firms establish a ________ so that sufficient funds are available to repay bondholders on the maturity date.

Question

11-08-2022
Business

contestada

Firms establish a ________ so that sufficient funds are available to repay bondholders on the maturity date.

Respuesta :

Otras preguntas

A single crystal of a metal is oriented for a tensile test such that its slip plane normal makes an angle of 64.2° with the tensile axis. Three possible slip di

Find the 97th term of the arithmetic sequence -16, 2, 20, ...

Find the midpoint of G and P

The length of a rectangle measures 4.7 times 10 to the 2nd power and the width measures 3.6 times 10 to the 1st power. Calculate the area of the rectangle

What is an equation of the line that passes through the points (4, -1)(4,−1) and (8, 5)(8,5)? Put your answer in fully reduced form.

If rho(x,y) is the density of a wire (mass per unit length), then m=∫Crho(x,y)ds is the mass of the wire. Find the mass of a wire having the shape of a semicirc

which of the following logarithmic expressions are equivalent to ln sqrt xy +ln (x/e)? select all that apply a. ln (sqrt x^3 y)/e) b. ln (x^2y /2e) c. 1/2 ln x

What all individuals who can contract a disease

The company's total assets are $40,000. The following is a listing of the company’s accounts and account balances as of December 31, Year 3. This company doesn'

Hundreds of years ago, the Incas of South America produced cloth unlike any the world has seen since. The Incas carefully bred animals called alpacas to get the

arshikhan8123 arshikhan8123 · Answer 1 · 2022-08-17T12:54:32+02:00

Firms establish a Sinking fund so that sufficient funds are available to repay bondholders on the maturity date.

A sinking fund is a fund containing money set apart or stored to pay off a debt or bond. An enterprise that has problems with debt will need to pay that debt off in the future, and the sinking fund enables to soften the problem of a large outlay of sales.

In more conventional circles, "sinking fund" refers to money set apart to pay off long-term debt including a bond. The term "sinking" probably refers to the lowering stage of debt remaining because it receives paid off.

A company sinking fund attracts traders as it affords a measure of safety to creditors. Sinking funds allow companies to control the quantity of their debt via compensation or retirement of bonds. A small commercial enterprise with manipulation over its debt is much less probable to default on its bond responsibilities.

A sinking fund is an amount of cash that you set aside (generally via saving a chunk every month) it's absolutely separate from your savings account or your emergency fund. A sinking fund may be used to pay for home maintenance, store for a new vehicle, pay for your holiday, or cowl massive scientific payments.

Learn more about Sinking Fund here:- https://brainly.com/question/26361248

#SPJ 4