Discuss the following methods of debt redemption:
Refunding

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Solution

Redemption is a way of escape from the burden of public debt. Redemption means repayment of a loan.
Refunding of debt implies the issue of new bonds and securities by the government in order to repay the matured loans.
In the refunding process, usually short-term securities are replaced by issuing long-term securities. Under this method the money burden of public debt is not relinquished but it is accumulated owing to the postponement of debt redemption.

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Discuss the following methods of debt redemption:Refunding

Discuss the following methods of debt redemption:
Refunding