rate trigger


A lower interest rate threshold or predetermined rate of interest rate decrease that triggers a buy-back of bonds by a company prior to maturity, so that they can re-issue their debt at a more favorable rate. This action typically includes paying a premium to current bondholders.
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
rate shopping rateable value