A long-term debt security that includes an option to lengthen its maturity period. Depending on the specific terms of the extendable bond, the bond holder and/or bond issuer may have one or more opportunities to defer the repayment of the bond's principal, during which time interest payments continue to be paid. Additionally, the bond holder or issuer may have the option to exchange the bond for one with a longer maturity, at an equal or higher rate of interest. Because these bonds contain an option to extend the maturity period, a feature that adds value to the bond, extendable bonds sell at a higher price than non-extendable bonds.
Also referred to as an extendable note.
Investors purchase extendable bonds in order to take advantage of changing interest rates without assuming the risk involved with a long-term bond. An extendable bond is the opposite of a retractable bond. A retractable bond includes an option to redeem the bond earlier than its original maturity period. Both extendable and retractable bonds are intended to provide investors with the flexibility to respond to changing economic conditions, and to take advantage of movements in interest rates.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Extendable bond — Bond whose maturity can be extended at the option of the lender or issuer. The New York Times Financial Glossary … Financial and business terms
extendable bond — bond whose maturity can be extended at the option of the holder ( investor). Bloomberg Financial Dictionary … Financial and business terms
extendable bond — Fin a bond whose maturity can be delayed by either the issuer or the holder … The ultimate business dictionary
Election Period — The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether or not he or she will exercise his or her option. In this time frame, a person can elect to extend the maturity date on an… … Investment dictionary
Облигация с продлеваемым сроком — облигация, срок погашения которой может быть продлен. При этом право продления в некоторых случаях может принадлежать инвестору, а в некоторых случаях эмитенту. По английски: Extendable bond Синонимы: Пролонгируемая облигация Синонимы английские … Финансовый словарь
Corgi Toys — (trademark) is the name of a range of die cast toy vehicles produced by Mettoy Playcraft Ltd. in the United Kingdom. The Mettoy company was founded in 1933 by German émigré Philip Ullmann in Northampton, England, where he was later joined by… … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
The Man from U.N.C.L.E. — THRUSH redirects here. For other uses, see Thrush (disambiguation). The Man from U.N.C.L.E. Genre Spy fi Format … Wikipedia
Polyester resin — Unsaturated Polyester Resin. The term generally used for unsaturated (means containing chemical double bonds) resins formed by the reaction of dibasic organic acids and polyhydric alcohols, basic component of SMC/BMC.Unsaturated polyesters are… … Wikipedia
Mettoy-Corgi — Corgi Toys (trademark) is the name of a line of die cast toy vehicles manufactured by Mettoy Playcraft Ltd. in the United Kingdom from 1956 to 1983. Early History Corgi Toys first appeared in July 1956, manufactured by Mettoy Playcraft Ltd. in… … Wikipedia