Established in 2006 as a Community of Reality

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Neno's Place Established in 2006 as a Community of Reality


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I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Term of the Day - redeemable bond

    Lobo
    Lobo
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    Posts : 28411
    Join date : 2013-01-12

    Term of the Day - redeemable bond Empty Term of the Day - redeemable bond

    Post by Lobo Sun 21 Jun 2015, 7:59 pm

    Term of the Day
    redeemable bond
    bond which the issuer has the right to redeem prior to its maturity date, under certainconditionsWhen issued, the bond will explain when it can be redeemed and what the price will be. In most cases, the price will be slightly above the par value for the bond and will increasethe earlier the bond is called. A company will often call a bond if it is paying a higher couponthan the current market interest rates. Basically, the company can reissue the same bonds at alower interest ratesaving them some amount on all the coupon payments; this process is called "refunding." Unfortunately, these are also the same circumstances in which the bonds have the highest price; interest rates have decreased since the bonds were issued, increasing the price. In many cases, the company will have the right to call the bonds at a lower price than the market price. If a bond is called, the bondholder will be notified by mail and have no choice in the matter. The bond will stop paying interest shortly after the bond is called, so there is no reason to hold on to it. Companies also typically advertise in major financial publications to notify bondholders. Generally, redeemable bonds will carry something called call protection. This means that there is some period of time during which the bond cannot be called. also called callable bond. opposite of irredeemable bond or non-callable bond.

      Current date/time is Sat 16 Nov 2024, 10:30 pm