what is nonrefundable bond, reading 62

Bonds can be called for any other reason than refunding
For example ,Consider company has $1000 bond at coupon rate 8% with market rate of interest at 7%. Now imagine market falls to 6% So if the company has call option with its bond, it can call all it bonds and refund them at lower coupon rate of 6% leading to huge saving. So the refunding bonds are the ones for which bonds can be called but not refunded.
 
a bond is nonrefundable when the issuer can’t pay off the bond with proceeds from a separate issue. this is refunding protection. it’s mainly a protection against interest rate volatility.
a company will want to issue lower coupon debt when interest rates decrease and will pay off callable bonds and issue new lower cost debt. if a bond is nonrefundable, the issuing company cannot do this.
I think I’m right?
 
i think we said the same thing, just in different ways.
 
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