Pre-Funded Bond
Categories: Bonds
See: Advance Refunding.
When a bond is pre-funded, it is already...funded. That is, the cash to pay off that bond is already "there," wherever "there" is, so that risk to the lender is usually extremely small.
See: Advance Refunding.
When a bond is pre-funded, it is already...funded. That is, the cash to pay off that bond is already "there," wherever "there" is, so that risk to the lender is usually extremely small.