Business and Personal Finance Dictionary

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• SINKING FUND BONDS (SINKERS)
  
  Revenue bond issues that require the issuer to accumulate or set aside part of the annual revenue which is then used to redeem bonds before maturity, often well before regular call dates. The set-aside funds are called the sinking fund. The quantity of bonds subject to a sinking fund call is established in a sinking fund schedule. The specific bonds that are called each year are normally chosen for redemption by the drawing of random lots. Sinking fund calls are usually at or near par.
  
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