Posted in Finance, Accounting and Economics Terms, Total Reads: 325
Definition: Doubling Option
It refers to a sinking fund provision. To understand doubling option, let us first understand what is meant by sinking fund. A sinking fund provision requires that the issuer set aside a certain amount of money regularly for the purpose of redeeming the bonds. Now the Doubling Option is a provision or a right of an bond issuer wherein the issuer can double the sinking fund provision so that they can redeem double the number of bonds.