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  • January 15, 2023
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Extendible Bond

A bond that pays a rate of interest higher than an otherwise identical fixed-rate, bullet maturity bond, with the issuer having the right to extend the bond’s life beyond its original maturity date. For example, a 5-year bond may pay a 5% coupon rate while the issuer has the right to strengthen the bond’s life for an additional period of 3 years.


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