Why would a company choose to buy back bonds before their maturity date?
Question:
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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If interest rates decrease a company may choose to buy back high interest rat...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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Related Video
A stock buyback is when a public company uses cash to buy shares of its own stock on the open market. A company may do this to return money to shareholders that it doesn\\\\\\\'t need to fund operations and other investments.This video will give you detailed overview about how stock buy back works and how it is useful tool for companies to raise capital .
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