High Interest Investment

what kind of accounts are these? Investment in bonds held to maturity and Sinking Fund for Bond Maturity?

Thanks Christian. The Sinking Funds is an asset then? And the bond one goes under equity?

Public Comments

1. Investing in bonds held to maturity just means that you plan to own a bond long term, until it matures and the issuer pays you the principle value. A sinking fund is when an issuer of bonds sets up a separate savings account (the sinking fund) to put money into that will go to pay the principle of the bond when it matures. Bonds with sinking funds are considered safer because the company is setting aside extra cash to make the final principle payment. Some companies or issuers do not set aside cash, they simple expect to refinance the maturing bond with new bonds.