When a firm makes annual deposits to repay bondholders at maturity, it is using a?

Utilizing the sinking fund. It is a methods for reimbursing reserves acquired through a security issue through intermittent installments to a trustee who resigns some portion of the issue by buying the securities in the open market. Instead of the backer reimbursing the whole central of a security issue on the development date, another organization purchases back a bit of the issue every year and more often than not at a settled standard esteem or at the present market estimation of the securities, whichever is less.