Callable Bond

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Dictionary Says

Definition of 'Callable Bond'

A bond that can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called.

Also known as a "redeemable bond".
Investopedia Says

Investopedia explains 'Callable Bond'

The main cause of a call is a decline in interest rates. If interest rates have declined since a company first issued the bonds, it will likely want to refinance this debt at a lower rate of interest. In this case, company will call its current bonds and reissue them at a lower rate of interest.

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'Callable Bond'

  • Why doesn't the price of a callable bond exceed its call price ...

    http://www.investopedia.com/ask/answers/07/callablebond.asp
    A callable bond provides the issuer (borrowing entity) with an option to redeem
    the bond before its original maturity date. The ability to call a bond. ...

  • Callable Bond

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    ... LIFA Level I; CSC; CPH. Definitions; Investing; Personal Finance; Active Trading;
    Forex; Videos /. Callable Bond. ... Related Videos. Callable Bond. ...

  • Callable Bonds: Leading A Double Life

    http://www.investopedia.com/articles/bonds/07/callable_bonds.asp
    ... It is simple, plain and safe. The callable bond, on the other hand, is the
    exciting, slightly dangerous cousin of the regular bond. ...

  • Bond Call Features: Don't Get Caught Off Guard

    http://www.investopedia.com/articles/bonds/05/052305.asp
    ... Here we look at how a call can cause losses, what to look for in a callable bond
    and how to prepare for the possibility of your bond being called. ...

  • Advanced Bond Concepts: Convexity | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond6.asp
    ... In the chart above, the callable bond will behave like an option-free bond at any
    point to the right of *Y. This portion of the graph has positive convexity ...

  • A corporate bond I own has just been called by the issuer. How can ...

    http://www.investopedia.com/ask/answers/05/053005.asp
    ... indenture, so be sure you understand the details of the indenture for the bond you
    are buying. Most of today's corporate debentures are callable bonds, and ...

  • 5 Basic Things To Know About Bonds

    http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
    ... return. Yield to Call (YTC) A callable bond always bears some probability
    of being called before the maturity date. Investors will ...

  • I have discovered that a bond I am interested in has a sinking ...

    http://www.investopedia.com/ask/answers/05/053105.asp
    ... price. This may sound very similar to a callable bond, but there are a few
    important differences investors should be aware of. First ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Provisions ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/bond-redemption-provisions.asp
    Learn the various types of ways a callable bond may be redeemed. Shows when
    these options could be executed, and provides a sample call. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Pricing Bonds ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/pricing-bonds.asp
    ... 13.13 Technical Analysis; 13.14 Using Price Multiples. 14. Fixed Income Investments:
    14.1 Introduction; 14.2 Bond Features; 14.3 Basic Coupon Structures; ...

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