advance refunding

advance refunding definition - finance
Issuing a bond or note with a longer maturity period than the original issue in order to pay off that original issue. Advance refunding is done to take advantage of decreased interest rates, which makes the new debt less expensive than the current debt. Also called prefunding.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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