2.11 Debt Retirement
When interest rates go up, companies rarely wish to retire their debt, but if they do, they can buy their bonds in the open market at a price below par.
When interest rates go down, issuers typically call their callable bonds. We will discuss callable bonds in detail later. If the bonds are not callable, the company might publish a tender offer, in which the company offers to buy the bonds at a slight premium above the current market price to motivate bondholders to tender them for sale.
Bonds