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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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* Irredeemable bonds. In this case it's assumed that the upfront nominal (par) value of the bonds is never repaid to the bondholders, who in return benefit from a theoretically endless stream of coupon or interest payments.
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%.