doubling option


As part of a sinking fund provision, an option available to a bond issuer that enables it to increase the number of callable bonds it wants to redeem by as much as 100%. Bond issuers will exercise this option during periods of decreasing interest rates when it can buy back as many bonds as possible at the call price.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
double-entry bookkeeping doubtful