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refunded bond

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Financial Dictionary

Refunded Bond

A bond, originally issued as a regular or revenue bond, that is now secured by a second issue of bonds which are held in an "escrow fund" consisting of U.S. government debt until the first bond issue reaches maturity.

Investopedia Commentary

This is sometimes referred to as a prerefunded bond.

Related Links

Bond Basics Tutorial

See also: Bond, Escrow, Refunding

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