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Net Advantage of Refunding |
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Net advantage of refunding The net present value of the savings from a refunding. Net Advantage of Refunding The net present value of a refund. The net present value is the value in current dollars of some future cash flow and a refund is the practice of redeeming a bond before maturity by issuing another bond with a lower cost (such as a lower interest rate). If the net present value of a refund is above a certain amount, then it may be worth the cost of issuing a new bond. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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