Bond retirement

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. A bond retirement may occur when bonds reach their scheduled maturity dates, in which case the issuer is obligated to retire them. Or, a bond may be callable, in which case the issuer can retire the bonds early if it is financially advantageous to do so. Finally, a retirement can occur at the behest of investors if the bonds are convertible, in which case bonds are retired and replaced with the equity shares of the issuer.

Related Courses

Accounting for Investments 
Corporate Finance 
GAAP Guidebook