sinking fund bond

Sinking Fund Bond

A bond with a fund or account into which an issuer deposits money on a regular basis to repay the bond when it matures. For example, if a company issues a bond with a balloon maturity of seven years, one may put money into a bond sinking fund for seven years in order to be ready to pay off the principal when it comes due. Some bonds have sinking fund provisions, requiring the issuer to put money aside to repay bondholders at maturity. See also: Sinking Fund Call.

sinking fund bond

A bond issue for which the issuer is required to establish a sinking fund to provide for the orderly retirement of the bonds. Also called sinker.
References in periodicals archive ?
Previous work in this area has analyzed these provisions in terms of interest rate risk,(1) default risk,(2) and the "accumulation game," in which investors increase the value of a sinking fund bond issue by increasing the concentration of its ownership.
the "Company") today announced that the Company has fully redeemed its 12% Sinking Fund Bonds due December 31, 2007, which had an outstanding principal balance of $9,036,000, at their regular redemption price of 102% of par ($1,020.
Conventional sinking fund bonds typically make annual sinking fund payments, which commence after some grace period: |Mathematical Expression Omitted~ during the grace period; |Mathematical Expression Omitted~, a positive constant, on each sinking fund date, with a balloon payment |Mathematical Expression Omitted~ (with S* possibly equal to S) on the maturity date; and |Mathematical Expression Omitted~ for all other dates.
Norman Swanton, the Chairman and Chief Executive Officer of the Company noted that "the retirement and redemption of both our outstanding 12% Sinking Fund Convertible Bonds due 2017 and our outstanding 12% Sinking Fund Bonds due 2007, having a combined outstanding balance of $14.
441 per cent First Mortgage Sinking Fund Bonds, due August 15, 2035.
today announced that the company has elected to fully redeem before maturity its 12% Sinking Fund Bonds due December 31, 2007, at their regular redemption price of 102% of the principal amount thereof ($1,020.
15, 2002-2019 with $3,475,000 special sinking fund bonds due Oct.
15, 1999-2021, with $4,500,000 special sinking fund bonds due $1,500,000 each on Oct.
15, 2024 and special sinking fund bonds of $12,000,000 due Oct.
17 /PRNewswire/ -- Baltimore Gas and Electric Company (NYSE: BGE) announced today the redemption of all $29,916,000 principal amount outstanding 4-1/2 percent Series due 1994 First Refunding Mortgage Sinking Fund Bonds.
18 /PRNewswire/ -- Kramer, Levin, Naftalis, Nessen, Kamin & Frankel announced today on behalf of certain holders of 9-3/8 percent sinking fund bonds due Feb.