Call feature
7.6a Calling the Debt
7.6b Government Securities
develops an annual borrowing plan for Saudi Arabia to address debt
7.6c National Debt
National debt
have very high debt-to-GDP ratios. In 2020, Greece’s ratio was over
Many bonds have a call feature, which permits the firm to retire the bonds prior to maturity.
If interest rates rise after a bond has been issued, it may be advantageous for the company to call the bond.
Bonds may be retired prior to maturity by (1) repurchases, (2) new issue, (3) a call feature:
The call feature permits the issuer to redeem a bond prior to maturity.
The total debt is less important than its proportion to the country’s gross domestic product (GDP).
