Economy, asked by aniketmhatre9386, 9 months ago

A fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue is called

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Answered by nk0817516

1

Answer: Sinking fund

Explanation: A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. A sinking fund is established so the company can contribute to the fund in the years leading up to the bond's maturity.

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