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Sinking Fund

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image for OpenScout resource :: Sinking Fund

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To raise funds for expansion, product development, research, and other purposes, companies some times borrow money by issuing bonds, which are long-term promissory notes issued by companies to investors. Bond agreements or indentures generally require corporations to make regular interest payments—often semiannually—during the term of the bond.

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Copyright © 2011 Advameg, Inc.