Extendible means you can extend the maturity date (i.e., make it mature later than its original maturity date). Retractable means you can shorten the maturity date (i.e., make it mature sooner than its original maturity date).
In the text, you might see examples of the following kinds of bond quotes: 1. 1 march 08 2. 1 march 08/12 3. 1 march 15/10 The first line is a bond that matures march 1, 2008.
The second line is a bond that also matures march 1, 2008. However, the extra figure on the end, signifying 2012, means you can do something special with this bond. If the original maturity date is 2008 but you can also make it mature on 2012 if you wish, this must be an extendible bond. It's extendible because you can lengthen the term to maturity. The third line is a bond that also matures march 1, 2015. However, the extra figure on the end, signifying 2010, means you can do something special with this bond. If the original maturity date is 2015 but you can also make it mature on 2010 if you wish, thismust be a retractable bond. It's retractable because you can shorten the term to maturity. So, the first date is always the original maturity date. Any figures that follow the original date mean that the bond is either extendible or retractable. To determine which it is, compare the original maturity date with the extra date added on to the end of the quote.
