Phrases with «callable bonds»

"Callable bonds" refers to a type of financial instrument that a company or government can redeem or "call back" before their maturity date. This means that the issuer of the bond has the right to repay the bondholders before the agreed-upon term ends, usually when interest rates have decreased, which allows them to save money. Full definition

callable bonds

Sentences with «callable bonds»

In reality, prices of callable bonds are unlikely to move much above the call price if lower interest rates make the bond likely to be called. (investinginbonds.com)
For example, Company A issues callable bonds with an 8 % interest rate. (investopedia.com)
Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yields. (investinginbonds.com)
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Phrases with «callable bonds»

Sentences with «callable bonds»

See also