mandatory tender bond
mandatory tender bond
A bond with a long maturity but a shorter-term (generally six months to five years) mandatory tender date. Unlike an ordinary put bond, a mandatory tender bond is put back to the bondholder who does not take action to roll the bond into the next tender period. The interest rate is adjusted on the mandatory tender date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.