85% base rate, as of the first sinking fund date by the amounts indicated and remain at the new rate for the life of the issue.
08 years); and the four ten-year issues have a contingent sinking fund structure that is different from that of the two five-year issues.
The contingent sinking fund contained in the ISFDs can be explained in terms of option theory.
The conventional bond in this case has a sinking fund that makes semiannual payments based on the base annual sinking fund percentage and beginning when indicated in Exhibit 1.
Each scenario incorporated a sinking fund for asset replacement.
The sinking fund for asset replacement was designed to achieve two important objectives.
The combined expenditures for capital purchases, debt service, sinking fund payments and operations, along with their tax impact, are shown in Exhibit 4.
Debt service payments for each of the first five years of these bonds are shown for both school and nonschool construction, as are the annual sinking fund payments.
The Prevalence of Sinking Fund Provisions as a Functions of Credit Rating Number of Number With % With Rating Observations Sinking Funds Sinking Funds Aaa 14 1 7.
Having described sinking funds in some detail and presented the intuition behind designation policy, the discussion turns to valuation.
Kalotay, "On the Management of Sinking Funds," Financial Management (Summer 1981), pp.
Many corporate bond indentures contain sinking fund provisions.
