Irredeemable bond

(redirected from Irredeemable Bonds)

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.
Mentioned in ?
References in periodicals archive ?
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)".
Financial strategy, advanced financial reporting and risk management: the weighted-average cost of capital is a useful formula for determining whether an investment in a given venture is worth the risk. it's also well-examined, so students across the board need to understand it fully
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%.
Financial strategy: students tend to find discussing debt finance far easier than doing the calculations. Andrew Howarth explains how to deal with yield on debt

Financial browser ?
Full browser ?