Bond refunding is generally advantageous to the investor because the investor gets a higher future interest rate.
Their higher-interest investment is called away, and they must seek to replace that investment with a comparable obligation, which will likely not return as much as the old obligation.

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Bond refunding is generally advantageous to the investor because the investor gets a higher future interest rate.
Their higher-interest investment is called away, and they must seek to replace that investment with a comparable obligation, which will likely not return as much as the old obligation.

Bond Refunding Is Generally Advantageous to the Investor Because the Investor