From the perspective of a bondholder, how are bonds that include a sinking fund provision generally categorized?

Bond Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Bond Marketsfinance-mcqs › bond-markets
Published
10 Apr 2023
Last updated
28 May 2026

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Explanation

Bonds with sinking fund provisions are viewed by bondholders as less risky because the sinking fund reduces the chance of default by ensuring periodic repayment of principal.

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