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 ?
* 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%.