Refunded bond
Also called a prerefunded bond, one that originally may have been issued as a general obligation or revenue bond but that is now secured by an "escrow fund" consisting entirely of direct U.S.
ADVANCED REFUNDED BONDS - A municipality may sell a second bond issue at a lower interest rate cost, pl...
ADVANCED REFUNDING - Is the technique of replacing one bond issue by another. This typically occurs whe...
Refunded bonds (also called prerefunded bonds) are tax-backed or revenue bonds that the issuer has allocated funds to fully retire. The issuer hasn't retied the debt yet, either because it is not yet callable or for some other reason.
Refunded Bond
A bond that may originally have been issued as a general obligation or revenue bond but that is now secured by an "escrow fund" consisting entirely of direct US government obligations that are sufficient for paying the bondholders.
Refunded Bonds
The outstanding bonds replaced by new bonds during a refunding.
Refunding Bonds
The issuance of a new bonds for the purpose of replacing outstanding bonds.
Prerefunded bond
Refunded bond.
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Prerefunded bond
Refunded bond.
Prerefunding
Procedure of floating a second bond at a lower interest rate in order to pay off the first bond at the first call date and to reduce overall borrowing costs.
Refunded bond.
Present value
The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor.
Refunded bond.
Prerefunding
Procedure of floating a second bond at a lower interest rate in order to pay off the first bond at the first call date and to reduce overall borrowing costs.
Presale order ...
Refunded Bond
Bonds that have their principle cash amount already held aside by the original issuer of the debt.
ADVANCED REFUNDED BONDS " Bonds whose debt service is paid by escrowed funds. Also called Pre-refunded Bonds.
Prerefunded bond Refunded bond. Present value The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future.
Full Cash or Gross Refunding - A method of advance refunding in which the proceeds of refunding bonds, without reinvestment, will provide sufficient funds to pay debt service on the refunded bonds.
The interest received from the Treasury securities pays the interest due for the pre-refunded bonds until they can be called or until they mature. The original set of bonds is said to be pre-refunded by the second set of bonds.
If that's the case, the bond is identified as a prerefunded bond.To prerefund, the issuer sells a second bond with a longer maturity or a lower coupon rate, or both, ...
See also: Bond, Callable Bond, Coupon, Government Security, Interest Rate, Municipal Bond, Refunded Bond, Refunding
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Defeasance Bonds
A process whereby a corporation gets rid of old, low-rate debt without paying it back before maturity--another term for "advance refunded bonds." ...
Prerefunding may occur when a corporation plans to redeem a callable bond before its maturity date. If that's the case, the bond is identified as a prerefunded bond.
specific securities are chosen because their maturity dates correspond to the date on which the company will need the money to redeem the first bond. This process is called prerefunding, and the bond to be called is identified as a prerefunded bond.
In an advanced refunding, the net proceeds of the refunding issue are used to purchase U.S. Government securities that are placed in irrevocable trusts with escrow agents to provide for all future debt service payments on the refunded bonds until ...
 See also: Refunding, Funding, Prerefunded bond, Banks, Indenture
  
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