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Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act or practice in which a company repays a bond by making a new issue of another bond. That is, a company refunds a bond when it borrows more money to repay the money it already owes to bondholders. One may think of refunding as the company refinancing a bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved