among other things, such as sale price, bond interest rate, bond maturity, bond redemption provisions, sinking fund provisions, and conditions under which the agreement may be
With an optional redemption, the issuer has the option of buying back the bonds from investors on specified call dates listed in the trust indenture. Mandatory redemption is a call provision that requires an issuer to redeem bonds before their stated maturity date. Eachterm bondhas its own manda...
redemption amountpayment guaranteesregional governmentlocal authoritySummary This chapter describes bond, which is loan by one party to another party. The issuer gives guarantee to the investor that he or she will pay interest on the loan at regular intervals and repay the loan at a specified time...
Maturity dateGenerally, this is when you will receive repayment of what you loaned an issuer (assuming the bond doesn't have any call or redemption features). If you want or need to sell a bond before its maturity date, you may be able to sell it to someone else, though there is no...
What Is Debt Redemption? Personal Finance Callable Debt Definition Personal Finance What Is a Full Call in Fixed Income? Municipal Bond Defeasance Municipal bond defeasance involves the use of "pre-refunding bonds," which are bonds issued to pay the obligatory cash outflows of an earlier bond iss...
A bond ladder is a way of creating your own adjustable-rate income stream, by buying bonds or bond funds with staggered maturity dates.
Pros of bond ETFs Easier to manage.A bond ETF pays out the interest it receives on the bonds in its portfolio. So a bond ETF can be a good way to set up an income stream without having to worry about the maturity and redemption of individual bonds. ...
As a result, the ETF manager doesn't have to sell holdings — potentially creating capital gains — to meet investor redemptions. Mutual fund shareholders, on the other hand, redeem shares directly from the fund. The fund manager must often sell fund securities to honor redemptions, ...
As a result, the ETF manager doesn't have to sell holdings — potentially creating capital gains — to meet investor redemptions. Mutual fund shareholders, on the other hand, redeem shares directly from the fund. The fund manager must often sell fund securities to honor redemptions, ...
Redemption Before Maturity Some bonds contain a feature that allows the issuer to redeem, or call, the debt before maturity. The issuer can exercise the call feature on a set date -- the call date -- for a predetermined price, usually a little more than the face value. A call is mandat...