Irredeemable bond

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Irredeemable bond

A bond lacking a call feature or a right of redemption. Also refers to a perpetual bond.

Irredeemable Bond

1. Any bond that is not a callable bond. The issuer of an irredeemable bond may not call, refinance, or otherwise prevent the bond from reaching its maturity.

2. See: Perpetual bond.
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The conventional formula for irredeemable bonds is typically presented as the "cost of irredeemable bonds, paying annual net interest (ill - ti), and having a current ex-interest price (Po)".
As with irredeemable bonds, the price of redeemable bonds can fluctuate over time.
Let's now assume that Kite issues some $100 irredeemable bonds at par, with a coupon rate of 5%.