Callable bonds give the right to the issuer to, Ask an Expert

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Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the issuers when the coupon interest paid by the bond is higher than the prevailing interest rates. Basically, the company can issue the same bonds at a lower interest rate leading to lower cost of financing.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9506716

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