Mandatory Redemption Schedule

AAA

DEFINITION of 'Mandatory Redemption Schedule'

Specified dates when a bond issuer is required to redeem all or a portion of the outstanding issues of a bond prior to its maturity. The issuer might be required to redeem all or a portion of the bonds according to the call or prepayment provisions of the of the bond contract.

INVESTOPEDIA EXPLAINS 'Mandatory Redemption Schedule'

Some types of mandatory redemptions occur either on a scheduled basis, or when a specified amount of money is available in the sinking fund. Bonds may be redeemed at a specified price, usually at par, and the bondholder will receive any accrued interest to the redemption date.

RELATED TERMS
  1. Mandatorily Redeemable Shares

    Shares owned by an individual or entity which are required to ...
  2. Extraordinary Redemption

    A provision that gives a bond issuer the right to call its bonds ...
  3. Issuer

    A legal entity that develops, registers and sells securities ...
  4. Prepayment

    The satisfaction of a debt or installment payment before its ...
  5. Redemption

    The return of an investor's principal in a fixed income security, ...
  6. Sinking Fund

    A means of repaying funds that were borrowed through a bond issue. ...
Related Articles
  1. Bond Call Features: Don't Get Caught ...
    Bonds & Fixed Income

    Bond Call Features: Don't Get Caught ...

  2. Callable Bonds: Leading A Double Life
    Options & Futures

    Callable Bonds: Leading A Double Life

  3. Common Bond-Buying Mistakes
    Options & Futures

    Common Bond-Buying Mistakes

  4. How long are credit ratings valid?
    Bonds & Fixed Income

    How long are credit ratings valid?

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center