An account managed by the bond trustee for early bond redemption payments is called a:

A) Sinking fund.
B) Collateral payment account.
C) Deed in trust account.
D) Call provision.
E) Par value fund.

A sinking fund is specifically set up by the bond issuer and managed by the bond trustee to set aside money over time for the purpose of redeeming the bonds early, ensuring that there is sufficient capital available to pay off bondholders when the bonds are called or mature.