JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Early Bond Repurchases Without Retirement
Author(s): Sheldon R. Smith, Marty D. Van Wagoner
Citation: Sheldon R. Smith, Marty D. Van Wagoner, (2020) "Early Bond Repurchases Without Retirement," Journal of Applied Business and Economics, Vol. 22, Iss.13, pp. 92-101
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Companies can buy back and retire their own bonds before maturity, resulting in a possible gain or loss on the extinguishment of debt. What would happen if a company repurchased its own bonds before maturity but did not retire them, potentially holding them for resale later before the bonds mature? This paper provides a conceptual exploration of the early repurchase of bonds without a corresponding retirement.