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callable bond

   Also found in: Wikipedia 0.06 sec.
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".

Notes:
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. The company will call its current bonds and reissue them at a lower rate of interest.


callable bond
A bond that is subject to redemption by its issuer before maturity.

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Table excludes callable bonds currently in default.
Table excludes callable bonds currently in default.
agency callable bond portfolio, which had a lower yield than the Company's loan portfolio.
 
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