Usually, issuers only
redeem callable bonds early when it is beneficial to them as a business.
Issuers can
redeem callable bonds prior to maturity.
Primarily this would occur when there is a drop in interest rates — issuers often
redeem the callable bond and issue another one at the new, lower interest rate.
Not exact matches
Callable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of pa
Callable and puttable The issuer of a
callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of pa
callable corporate
bond maintains the right to
redeem the security on a set date prior to maturity and pay back the
bond's owner either par (full) value or a percentage of par value.
A
callable or redeemable
bond is a
bond that may be
redeemed by the issuing company before the maturity date.
Callable bonds (also called redeemable
bonds) can be
redeemed by the issuer earlier than the maturity date, usually at the choice of the issuer.
Also, many corporate
bonds are
callable, meaning that they can be called in by the issuing company and
redeemed on a fixed date.
Callable or redeemable
bonds are
bonds that can be
redeemed or paid off by the issuer prior to the
bonds» maturity date.
If a company issues a «
Callable Bond», it means that it can be redeemed by the Issuer (company) before the bond's matur
Bond», it means that it can be
redeemed by the Issuer (company) before the
bond's matur
bond's maturity.
If a
bond is
callable, it means that GE could
redeem the
bond early, which in this case it can not.
A
callable bond is worth less to an investor than a noncallable
bond because the company issuing the
bond has the power to
redeem it and deprive the bondholder of the additional interest payments he'd be entitled to if the
bond was held to maturity.
A
callable municipal, corporate, federal agency or government security gives the issuer of the
bond the right to
redeem it at predetermined prices at specified times prior to maturity.