Series 52: 2.7.2. Refunding

Taken from our Series 52 Top Off Online Guide

2.7.2.  Refunding

Refunding is paying off old bonds with the proceeds from selling new bonds. Whereas redemption has to do with what the bond indenture will let the issuer do, refunding has to do with what is financially possible and/or desirable for the issuer. The issuer has to take both into account. Some refunding options depend on whether and how soon the issuer can redeem the bonds. Likewise, in order to redeem bonds, the issuer must be able to finance

Since you're reading about Series 52: 2.7.2. Refunding, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 52
Please Enable Javascript
to view this content!