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Bonds can be retired before their maturity through a process known as early redemption or call. This typically occurs when the issuer decides to repay the bondholder before the scheduled maturity date, often due to favorable interest rate conditions. Call provisions, which are specified in the bond's terms, outline the conditions under which this can happen. Investors may receive their principal back along with any accrued interest, but they may miss out on future interest payments.
What else can I help you with?
How does the yield to maturity change over time?
The yield to maturity of a bond generally decreases over time as the bond approaches its maturity date. This is because as the bond gets closer to maturity, the price of the bond tends to increase, which in turn lowers the yield to maturity.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
What is the maturity date on a bond from 2001?
That would depend on the maturity
Order the events in the life of a bond from earliest to latest A bond maturity B bond issue C coupon payment?
1)bond issue 2)coupon payment 3)bond maturity
What is a callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
What is the difference between a callable bond and a retractable bond?
A callable bond is where the issuer has the ability to redeem the bond prior to maturity. A callable bond is where the bond hold has the ability to force the issuer to redeem the bond before maturity. Hope this helps.
How does the yield to maturity change over time?
The yield to maturity of a bond generally decreases over time as the bond approaches its maturity date. This is because as the bond gets closer to maturity, the price of the bond tends to increase, which in turn lowers the yield to maturity.
Does the yield to maturity of a bond decrease as the bond nears maturity?
Nope it doesn't you suck
What is the definition of 'callable bond'?
A callable bond, also known as a redeemable bond, is a debt security that entitles the issuer of the bond to retain the rights to redeem it before the maturity date of the bond is reached.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
What is a call date?
A call date is a date on which a callable bond may be redeemed before its maturity.
Can you transfer a US savings bond to another person?
It is possible to reassign a bond. However it is not possible to reassign a US bond before maturity without a penalty fee.
What is A call-protected bond?
A call-protected bond is a type of bond where the issuer is restricted from redeeming or calling it back before its maturity date. This means that the bondholder can rely on receiving interest payments and the principal amount at maturity without the risk of early repayment.
What is the maturity date on a bond from 2001?
That would depend on the maturity
Does the yield to maturity represent the promised or expected return on the bond?
The yield to maturity represents the promised yield on a bond
What is a provision on a bond which provides for the systematic retirement of the bond prior to their maturity?
A provision on a bond that provides for the systematic retirement of the bond prior to maturity is known as a sinking fund provision. This provision requires the issuer to set aside funds on a regular basis to repay a portion of the bond issue before it matures, reducing the overall debt burden.
Order the events in the life of a bond from earliest to latest A bond maturity B bond issue C coupon payment?
1)bond issue 2)coupon payment 3)bond maturity
