Mandatory Redemption Schedule

What is ‘Mandatory Redemption Schedule’

Specified dates when a bond issuer is required to redeem all or a portion of the outstanding issues of a bond prior to its maturity. The issuer might be required to redeem all or a portion of the bonds according to the call or prepayment provisions of the of the bond contract.

Explaining ‘Mandatory Redemption Schedule’

Some types of mandatory redemptions occur either on a scheduled basis, or when a specified amount of money is available in the sinking fund. Bonds may be redeemed at a specified price, usually at par, and the bondholder will receive any accrued interest to the redemption date.

Further Reading

  • Origins resting behind banking financial accountability of paragraphs 78 to 82 of the First Schedule of the Companies Act 1862 (UK) – [PDF]
  • Financial engineering in corporate finance: An overview – [PDF]
  • Accounting for redeemable preferred stock: Unresolved issues – [PDF]
  • Response to the FASB discussion memorandum'Distinguishing B – [PDF]
  • Designing fee schedules by formulae, politics, and negotiations. – [PDF]
  • Evaluating the Economics of Refunding High-Coupon Sinking-Fund Debt – [PDF]
  • Variation in attributes of redeemable preferred stock: Implications for accounting standards – [PDF]