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Advance refunding

Definition: [crh] In the context of municipal bonds, refers to the sale of new bonds (the refundingDefinition: > issue) before the first call date of old bonds (the issue to be refunded). The refunding issuDefinition: e usually specifies a rate lower than the issue to be refunded, and the proceeds are invested, usually in government securities, until the higher-rate bonds become callable. See: RefundiDefinition: ng escrow deposits.

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