Four, the company needs to find the funds to repay that bond in four years.
Times, Sunday Times
Money to repay the bond issuance would come from coal severance taxes.
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The issuing entity guarantees to repay the bond over a certain period of time, plus either a fixed or variable rate of return.
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Most callable bonds allow the issuer to repay the bond at par.
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Some bond funds specialize in high-yield securities (junk bonds), which are corporate bonds carrying a higher risk, due to the potential inability of the issuer to repay the bond.
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