A corporate issuer has issued a new bond and escrowed the proceeds to be used to call in an existing bond issue as soon as the first call date for the existing bond is reached. Known as pre-refunding, the concept would be most closely associated with

A corporate issuer has issued a new bond and escrowed the proceeds to be used to call in an existing bond issue as soon as the first call date for the existing bond is reached. Known as pre-refunding, the concept would be most closely associated with

A corporate issuer has issued a new bond and escrowed the proceeds to be used to call in an existing bond issue as soon as the first call date for the existing bond is reached. Known as pre-refunding, the concept would be most closely associated with



A) disintermediation

B) defeasance

C) secondary offering

D) amortization



Answer: B) defeasance


Learn More :