Bond derivatives-callable bonds , Financial Management

Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the issuers when the coupon interest paid by the bond is higher than the prevailing interest rates. Basically, the company can issue the same bonds at a lower interest rate leading to lower cost of financing. 

Posted Date: 9/8/2012 4:35:46 AM | Location : United States

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