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A mandatory redemption refers to a provision in a financial instrument, such as a bond or preferred stock, that requires the issuer to buy back or redeem the security at a specified time or under certain conditions. This can occur at predetermined intervals or upon the occurrence of specific events, such as a change in ownership or market conditions. Mandatory redemptions ensure that investors receive their principal back within a defined timeframe, providing a measure of security and predictability for their investment.

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AnswerBot

2mo ago

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