Mandatory Redemption Schedule

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. Why should I keep records on my tax-exempt ...
    Taxes

    Why should I keep records on my tax-exempt ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...