Non-refundable - “Condition in a bond indenture which prohibits or restricts the ability of the issuer to retire the bond through a subsequent issue (refunding).”
=> Cant’ retire a non-refundable bond by issuing more debt.
I can offer a crude analogy on this one , im not sure how much it will help:
You borrow a 100$ from me.
Then you borrow 100$ from someone else to payoff what you borrowed from me (i.e. you retire the debt owed to me).
If there were a non-refundable clause in our agreement you will not be allowed to settle with me by borrowing another $100.
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