NONREFUNDABLE BOND is a bond issue that cannot be redeemed for a stated period of time using the proceeds from a new, lower-cost issue to finance the refunding. The bond can still be called without a refunding, but the company must use internal capital or equity funds to retire the issue. This provides some protection to the bondholder if interest rates decline significantly.
FUND is a pool of money normally set apart for a purpose, for example, a pension fund to provide pensions.
CAP is a series of European interest rate call options used to protect against rate moves above a set strike level.
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