advance refunding definition

advance refunding

Arrangement in which new bonds are issued to repay previously issued bonds. The money realized from the sale of the new issue is invested in securities (usually government bonds) which are placed in escrow. The interest and principal payment from these securities is used in paying off the previously issued bonds.

advance refunding is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.

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