EXTENDABLE NOTES :

Extendable notes are issued for 10 years with flexibility to the issuer to review the interest rate every two years. The interest rate is adjusted every two years to reflect the prevailing market conditions by trying the interest rate to a spread over a bond index such as two years treasury notes. Depending on the specific terms of the extendable bond, the bond holder and/or bond issuer may have one or more opportunities to defer the repayment of the bond’s principal, during which time interest payments continue to be paid. Additionally, the bond holder or issuer may have the option to exchange the bond for one with a longer maturity, at an equal or higher rate of interest .Because these bonds contain an option to extend the maturity period, a feature that adds value to the bond,
extendable bonds sell at a higher price than non-extendable bonds