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.

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.
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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.
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

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