Make-Whole Call Provision

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Make Whole Call Provision

A provision in some bond agreements allowing the issuer to redeem the bond before maturity if it gives bondholders a lump-sum payment equal to the net present value of coupons they would have received, had the bond not been called. A make-whole call provision allows the issuer to reduce the amount of debt on its balance sheet, if need be, while also limiting bondholders' risk.

make-whole call provision

A stipulation in a bond indenture that permits the borrower to redeem a bond prior to maturity by making a lump-sum payment equal to the present value of future interest payments that will not be paid because of the early call. The provision makes the bondholder whole by providing compensation for interest payments that are missed because of an early redemption.

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call provision Make Whole Call Provision Make Whole Provision			The innovative characteristic of a make-whole call provision is that the call price floats inversely with risk-free rates. What is the cost of financial flexibility? Theory and evidence for ... by Powers, Eric; Tsyplakov, Sergey / Financial Management The new notes mature in 2017 and carry a no call provision for five years with a make-whole call provision exercisable any time prior to the stated call dates. Fitch Rates Allied Waste's New $750MM Sr. Secured Notes 'B+/RR3' by Business Wire Powers, 2001, "Indexing a Bond's Call Price: An Analysis of Make-Whole Call Provisions," University of South Carolina Working Paper. Do Nonrefunding Provisions Constrain Corporate Behavior? Evidence ... by Kerins Jr., Francis J. / Financial Management			Main en tierce Main Home maintenance Maintenance and Replacement Call Maintenance Bond Maintenance Call maintenance fee Maintenance Margin Maintenance Margin Requirement Mais-valia Major Bracket Major Currency Major Market Index Major Turn majority Majority Shareholder Majority Stake Majority Stockholder majority voting majority-owned subsidiary Make a Market Make It Rain Make Whole Call Provision Make Whole Provision Make-Up Make-Whole Call Provision Makegood maker Making a Line Making delivery Malagasy Ariary Malagasy Franc Malawian Kwacha Malaysia Commodity Exchange Maldivian Rufiyaa Male Chauvinism malfeasance Maloney Act Maltese Lira man's home as castle Managed Account Managed Currency Managed Earnings Managed Float Managed Futures Managed Futures Account Managed Money Management management agreement Management Audit Management Buy-In			make-dos Make-game Make-Good Make-Good Make-Goods Make-It-Yourself Make-live make-or-break make-or-break make-or-break Make-over make-peace make-ready make-ready time Make-To-Order make-up make-up make-up make-up Make-Up Art Cosmetics, Inc Make-up artist make-up bag Make-Up Feed Make-Up Gas make-up remover Make-Up Table Make-Up, Theatrical make-ups make-ups make-ups Make-Whole Call Provision Make-Whole Call Provisions Make-Whole Provision Make-Whole Provisions make-work Make-work job makeable makeable makeable Makeba Makeba Makeba, Miriam Makebate makebelieve Maked Maked Maked Maked Makeda Makedah Makedhonia Makedoc Makedon Makedon Makedonija Makedoniya Makedoniya Makedonska Televizija Makedonski, Stefan Makedonsko Voeno Vozduhoplovstvo Makedonya

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