Recent Post

Importance of Physical Exercise according ot age and sex

Importance of Physical Exercise according ot age and sex According to Age: Physical education is applicable for people of all ages. But programmes of physical education differ likings and dislikings for different age-groups. Not only physical exercise but also food, likings and dislikings and physical abilities are different for different age-groups. For example, physical ability of children is not equal to that of adults.  So to develop the abilies exercise through games should be introduced accordingly. Frog jumps, touch and back, crow jump or recreational games are some physical activities that can improve physical ability of children. Selection of exercise and games for adolescent should be done systematically. Standing in a line, exercise of hands and legs, running with a ball, touch and play, etc. and games and physcial exercise can be used to develop physical abilities of children. Remember, children and adolescents should not participate in weight lifting exercise. It causes h

What is sinking fund?

What is sinking fund?

A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. A sinking fund is established so the company can contribute to the fund in the years leading up to the bond's maturity.

A sinking fund is a type of fund that is created and set up purposely for repaying debt. The owner of the account sets aside a certain amount of money regularly and uses it only for a specific purpose. Often, it is used by corporations for bonds and deposits money to buy back issued bonds or parts of bonds before the maturity date arrives. It is also one way of enticing investors because the fund helps convince them that the issuer will not default on their payments.

Basically, the sinking fund is created to make paying off debt easier and to ensure that a default won't happen because there is a sufficient amount of money available to repay the debt. Though most bonds take several years to mature, it is always easier and more convenient to be able to reduce the principal amount long before it matures, consequently lowering credit risk.

Advantages of sinking funds

a) Brings in investors

b) The possibility of lower interest rates

c) Stable finances


The sinking fund was used in Great Britain in the 18th century to reduce the national debt. While used by Robert Walpole in 1716 and effectively in the 1720s and early 1730s, it originated in the commercial tax syndicates of the Italian peninsula of the 14th century, where its function was to retire redeemable public debt of those cities.

Sinking Fund types

Sinking fund may operate in one or more of the following ways:

  • The firm may repurchase a fraction of the outstanding bonds in the open market each year.
  • The firm may repurchase a fraction of outstanding bonds at a special call price associated with the sinking fund provision.
  • The firm has the option to repurchase the bonds at either the market price or the sinking fund price, whichever is lower. 
  • A less common provision is to call for periodic payments to a trustee, with the payments invested so that the accumulated sum can be used for retirement of the entire issue at maturity.

You may read

What is E-commerce?

E-commerce (Electronic commerce or EC) is the buying and selling of goods and services or transmitting funds or data over an electronic network, primarily the internet. These business transactions occur either....more

What is the Paris accord?

At COP 21 in Paris, Parties to the UNFCCC reached a landmark agreement to combat climate change and to accelerate and...more


People Are Reading...

Objectives of Physical Education


Liquid Thermometer

Laws of Reflection

Importance of physical education

The Importance of Information and Communication Technology

How to make a telephone call