Series 50: Advantages Of Advance Refunding

Taken from our Series 50 Online Guide

Advantages of Advance Refunding

A current refunding bond allows the issuer to refinance within 90 days of a call date. If interest rates decline, an issuer will want to refinance by issuing new bonds at a lower rate. Suppose, however, interest rates have fallen significantly, and the next call date is not on the near horizon. An advance refunding bond allows the issue

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