Non Callable bonds are those which the issuer cannot call. Whereas Non Refundable bonds could be called when interests rate fall but against them the issuer cannot issue new bonds on lower yield.
No. Assuming the issuer is paying a fixed rate (which most of the questions deal with), they would rather “refinance” when interest rates decrease. If interest rated increased, the issuer would be please that they are paying the lower fixed rate.
Calling a bond means repurchasing it from the investor.
Refunding a bond means repurchasing it from the investor with proceeds from selling a new bond at a lower interest rate.
So a bond can be callable (taken out and the borrower’s debt reduced) but not refundable (taken out but replaced with new debt).
See Morgan Stanley V. Archer Daniels Midland.
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