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Extendible bond (or extendable bondcite-ref-1[1]) is a complex bond with the embedded option for a holder to extend its maturity date by a number of years.cite-ref-2[2]cite-ref-3[3] Such a bond may be considered as a portfolio of a straight, shorter-term bond and a call option to buy a longer-term bond. This relatively rare type of bond works to the advantage of investors during periods of declining interest rates.cite-ref-4[4] Pricing of the extendible bond will be similar to that of a puttable bond.

Sometimes, the bond may be structured so as to give an option to extend to the issuer.cite-ref-5[5] In this case, pricing will be similar to that of a callable bond.

• Pricing

• References

• External links

• Price of an extendible bond is always higher than the price of a straight bond because the embedded option adds value to an investor;cite-ref-6[6]

• Yield on an extendible bond is lower than the yield on a straight bond.

cite-note-11. ↑ extendable bond

cite-note-22. ↑ "Financial Times". www.ft.com.

cite-note-33. ↑ "Investment Alternatives". Archived from the original on 2011-07-06. Retrieved 2010-10-18.

cite-note-44. ↑ "Extendable bond — Invest Definition". Archived from the original on 2011-07-18. Retrieved 2010-10-18.

cite-note-55. ↑ "Extendable Bond Definition". Investopedia.

cite-note-66. ↑ "IMF Puttable and Extendible Bonds" (PDF).

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