HomeDefinitionsCompareDebt RefundThe financial definition for Refund:To retire existing bond issues through the sale of a new bond issue, usually to reduce the interest rate being paid. Similar MatchesAdvance refundingAdvance refundingIn the context of municipal bonds, refers to the sale of new bonds (the refunding issue) before the first call date of old bonds (the issue to be refunded). The refunding issue usually specifies a rate lower than the issue to be refunded, and the proceeds are invested, usually in government securities, until the higher-rate bonds become callable. See: Refunding escrow deposits. High coupon bond refundingHigh coupon bond refunding../../finance-glossary/ a high-coupon bond with a new, lower-coupon bond. Junior refundingJunior refundingIssuing of new securities to refinance government debt that matures in one to five years. Further SuggestionsLow coupon bond refundingNet advantage of refunding Nonrefundable Prerefunded bond Prerefunding Refundable Refunded bond Click to compare definitions of Refund Click to view definitions beginning re |