Make whole

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Revision as of 17:12, 5 March 2018 by imported>Doug Williamson (Generalise to international context.)
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Securities.

To make whole is the action of the issuer of security, on early redemption, of calculating and paying a redemption value calculated at the government bond yield.

The presence of a make whole clause, under which it is mandatory for an issuer to make whole in this way, potentially makes it prohibitively expensive for the issuer to take an early redemption.


See also