mandatory tender bond

mandatory tender bond definition - business

mandatory tender bond

A bond with a long maturity but a shorter-term (generally six months to five years) mandatory tender date. Unlike an ordinary put bond, a mandatory tender bond is put back to the bondholder, who does not take action to roll the bond into the next tender period. The interest rate is adjusted on the mandatory tender date.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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