Advance refunding
Advance refunding - Definition It is paying off Maturity bonds before its expiry date with bonds having a longer maturity date. Issuing bonds with longer maturity date to pay off an earlier bond to take advantage of fall in Interest Rate is also known as "prefunding".
What is Advance refunding?
Advance refunding - Definition It is paying off Maturity bonds before its expiry date with bonds having a longer maturity date. Issuing bonds with longer maturity date to pay off an earlier bond to take advantage of fall in Interest Rate is also known as “prefunding”.
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