Based on the information given the bond repayment before the maturity date is called a(n) Sinking fund.
Sinking fund can be defined as the amount of money a company or organization saved so as to pay off their debt or loan amount before the repayment maturity date or period.
Sinking fund is important as it enables company to save for the amount they borrowed until future date.
With this companies can prepare or make arrangement for the debt repayment so as to easily payoff the amount loan to them.
Inconclusion bond repayment before the maturity date is called a(n) Sinking fund.
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