Advance refunding

Issuing a longer-maturity bond in Order to pay off an earlier bond (usually prior to ITS maturity), in Order to take advantage of a Drop in Interest rates. also called Prerefunding.

Related Terms: 11 Call, Drop, Fund, Interest, Interest rate, ITS, Long, Maturity, Order, Prerefunding, Refunding

Other Related Pages: Category: Bonds Starting With: A

Additional Related Terms: 10-K, Adjustable rate, Accrual bond, Accrual of discount, Accrued interest, Accumulation bond, Advance refunding, Agency bond, American Municipal Bond Assurance Corporation, Amortization of premium