Redeemable bond
Redeemable bond is a bond that gives investors the right to sell the bonds back to the corporation at a price that is usually close to the par value. If interest rates rise, then investors can redeem the bonds and reinvest at the higher rates.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Redeemable bond. Gives investors the right to sell the bonds back to the corporation at a price that is usually close to the par value. If interest rates rise, then investors can redeem the bonds and reinvest at the higher rates.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
