The advantage of sinking fund method over installment method is that the credit risk of bonds will be reduced. In debt repayment, the advantage of sinking fund method over installment method is that the credit risk of bonds will be reduced. For example, an important example of this arrangement is the sinking fund corresponding to two kinds of bonds with interest rate of 5% issued by American steel companies. The total issuance amount of these two bonds is&; 504000000, among which the bonds with lower priority are listed on the new york Stock Exchange, and they are called steel debtors in the bond market.