Bond redemption

Bond redemption.  Bonds that are outstanding may be called and redeemed in amounts that are multiples of $100,000 except that there is a restriction in the bond indenture that prohibits the redemption of more than $500,000 of the face amount of bonds in any one quarter.  A call premium is required, amounting to 5 percent of the face value of the repurchased bonds.  If your firm has more than one bond issue outstanding, the bonds carrying the highest interest rate will be redeemed first.  If bonds are to be redeemed, enter the face amount of the bonds for which redemption is desired (in thousands of dollars), preceded by a minus sign, under Bond Issue on the decision form.  If you decide to redeem $500,000 worth of bonds, for example, enter -500 on the decision form.  The 5 percent call premium will be charged automatically.  Bonds can be redeemed only by the parent company.

Maximum redemption:  Total amount of bonds outstanding (if less than $500,000)

Limits:  -500 to 0 (in thousands of dollars) in hundred thousand dollar lots