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Refundable |
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Refundable Refundable A bond that may be retired before maturity. Nonrefundable bonds does not protect bondholders from the risk that the issuer may effectively refinance a bond at a lower interest rate, which exposes bondholders to the risk that they could be deprived of coupon payments to which they would otherwise be entitled. Most bonds are nonrefundable for at least five or 10 years after issue but may become refundable afterward. See also: Refundable tax credit. 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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