Issues that provide funds to retire another issue early are known as
A) bearer bonds.
B) secured debentures.
C) unsecured debentures.
D) revenue bonds.
E) refunding bonds.

Question

Quizplus · Accepted Answer

Refunding bonds provide funds to retire another issue early by issuing new bonds at a lower interest rate to replace an existing higher interest rate bond. This helps to reduce the cost of debt and free up funds for other purposes.

Issues That Provide Funds to Retire Another Issue Early Are