Series 50: Make-whole Provision

Taken from our Series 50 - MSRB Municipal Advisor Representative Qualification Exam

Definition of the term Make-whole Provision...

a bond provision that requires that an issuer calling a bond must provide the bondholder with a lump sum payment that includes not just the principal but also the net present value (NPV) of all future coupon payments that the bondholder would have received if not for the call.


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