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What is the difference between extendible and retractable bonds?

Extendible bonds have a fixed maturity date

Retractable bonds offer no option for redemption

Extendible bonds are issued with short maturities

Retractable bonds can be redeemed at par by a specific date

Retractable bonds give the bondholder the option to redeem the bond at par value by a specific date agreed upon in the bond's terms. This feature provides the investor with flexibility and an exit strategy if needed. In contrast, extendible bonds allow the issuer to extend the maturity date in the future, thus providing the issuer with flexibility rather than the investor.

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