Listen to a Business English Dialogue About Redeemable bond
Philip: Hey Madelyn, have you heard of redeemable bonds?
Madelyn: No, Philip, I haven’t. What are they?
Philip: Redeemable bonds are those that the issuer can buy back from investors before they mature, usually at a predetermined price.
Madelyn: Ah, I see. So, it’s like the company can repay the bond before it’s due?
Philip: Exactly. It gives the issuer flexibility in managing their debt and can provide investors with an option to cash in early if needed.
Madelyn: That makes sense. It sounds like redeemable bonds offer benefits for both the issuer and the investor.
Philip: Indeed. It’s one of the features that investors consider when assessing the attractiveness of a bond investment.
Madelyn: So, investors need to be aware of the terms and conditions regarding redemption when investing in such bonds?
Philip: Absolutely. Understanding the redemption provisions is crucial for investors to make informed decisions about their bond investments.
Madelyn: Thanks for explaining, Philip. I’ll be sure to look into redeemable bonds further.
Philip: No problem, Madelyn. It’s always good to expand our knowledge about different investment options.