8bn) loan to Bank of Moscow, which was utilised the next day for the purchase of RUB295bn in government bonds, placed by the country's finance ministry with sinking fund provisions
for the purpose of the bailout.
Call and sinking fund provisions also influence bond betas since both alter the duration of the bond, and bond betas are increasing functions of duration.
i] = Sinking fund provision for bond i, measured by a dichotomous variable with i zero indicating no sinking fund provision and one indicating the presence of a sinking fund provision
Sinking fund provisions can serve as substitutes for call provisions (Kalotay and Williams (1992) and Ogden (1988)).
The Use of Sinking Fund Provisions This table presents data on the fraction of noncallable and callable bonds that included sinking funds by rating category.
Other data components summarize call features, mandatory and optional redemption provisions including designated and risk events holders repayment options, liquidation and exercise rights, covenants for exchange and conversion, and sinking fund provisions
Preferred stock may have mandatory sinking fund provisions
, as well as call/redemption provisions prior to maturity, which can be a negative feature when interest rates decline.
Many corporate bond indentures contain sinking fund provisions
Financial Derivatives Toolbox: Pricing and sensitivity calculations for sinking fund provisions
, range bonds, and step up/down coupon bonds
They will not be subject to redemption prior to their maturity and will not have the benefit of any sinking fund provisions
s (NYSE:FE) subsidiary, The Toledo Edison Company, pursuant to sinking fund provisions
of its 8% Series First Mortgage Bonds due 2003, will redeem $400,000 of the bonds on November 1, 1999.
s (NYSE:FE) subsidiary, The Cleveland Electric Illuminating Company, pursuant to sinking fund provisions
of its $90 Series S Preferred Stock, will redeem 18,750 shares on November 1, 1999, at a price of $1,000 per share plus accrued dividends up to the date of redemption.