PPT Slide
Sinking funds are more common on long-term issues (20-30 years) than on short-term issues like 5 years.
Sinking fund payments are usually made out of operating cash flows.
Sinking fund unlikely on a 5-year bond for a construction project.
Why might investors require a sinking fund? Would a sinking fund make sense for a 5-year bond to fund a construction project?