The main reason companies retire bonds prior to their maturity date is to relieve the pressure of paying interest payments.

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Companies often retire bonds prior to their maturity date to avoid the burden of making interest payments. When interest rates fall or the company's financial situation improves, it may become advantageous for the company to retire its outstanding debt early and secure financing at a lower rate, potentially saving money in the long run.

The Main Reason Companies Retire Bonds Prior to Their Maturity