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Redeemable bond
A bond which can be redeemed by the debt issuer prior to its maturity. This usually occurs when interest rates fall, to avoid the issuer having to pay high yields. Normally a premium is paid to the bond owner when the bond is called.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Stocks & securities
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