Bond issue that contains an option to extend its maturity period. Depending upon the terms of the bond indenture, the bond issuer, the bond holder, or both may have one or more options to delay the repayment of the bond's principal while the bond interest is continued to be paid. In addition, either party may have the right to exchange it for a bond of longer maturity at the same or higher interest rate. Extendable bonds usually sell at a higher price than the non-extendable bonds. Written also as extendible bond. opposite of retractable bond. also called extendable note, extendible note.