Minimum redemption amount

The sinking fund minimum redemption amount is the lowest value at which a bond issuer can redeem a portion of the outstanding bonds using the funds accumulated in the sinking fund. This provision is specified in the bond indenture and outlines the minimum amount that the issuer must pay to redeem a portion of the bonds held by investors through the sinking fund. 

By utilizing the sinking fund for redemptions, the issuer can gradually reduce its debt burden over time and fulfill its obligations to bondholders. This mechanism provides investors with more security and assurance that a portion of the principal amount will be repaid on a regular basis, enhancing the attractiveness of the investment.