Tradable Debt Instrument Redemption Provision

Definition

Tradable Debt Instrument Redemption Provision. Terms for the redemption of the debt represented by a debt security

Debt represented by a tradable debt security may be paid as a one off payment at maturity, by paying down principal amounts periodically, or by a call of the issue by the issuer. Debt that is defined by a convertible bond are redeemed by conversion into an equity security issued by the same company. More notes from the EDMC SME Review: Distinction between call and amortizing is whether you pay off everybody at the same time or via a lottery. SF can be either. either amortize the payment of a SF or pay it off by a lottery. The terms of the instrument determine that. Mandatory - all in the schedule. Mandatory to the bond issuer. Issuer has to pay off a certain amount at a certain time - this is in the Schedule. Callable - nothing mandatory.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.