| econ. |
retire bond; redeem bonds; service the bonds; pay off bonds; retire bonds (Bonds usually are issued by a company, city, state, country, etc. and are usually issued for a given period of time. For example, a city can issue a bond that they will pay interest to you for a period of 10 years. During the 10 year period, you will receive an interest payment usually on a quarterly basis. At the end of 10 years, they are required to pay you back the market price of that bond. At that time, the bond no longer exists, or is retired. Another way a bond can be retired is if the bond issuer puts in a clause that they can buy back the bond whenever they want usually by offering the bond holders a premium to the bond value. So, it a bond has a 10 year maturity period, and the bond issuer buys the bond back any time before 10 years, then the bond is retired.  yahoo.com Alexander Demidov) |
