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Optional Call
(redirected from Optional Calls)

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Optional Call
The ability of a bond issuer to redeem (or call) the bond before maturity. The optional call usually gives bondholders a premium to par to compensate them for lost coupon payments. Most callable bonds have a certain amount of time that must elapse before the issuer may exercise the optional call. See also: Doomsday call.

optional call
The call of a bond by an issuer who wishes to terminate a loan, generally because interest rates have declined since the time of issuance. Optional calls are frequently made at prices slightly higher than par value. Some bond issues are not subject to call; most issues provide a period of years after issuance during which optional calls are prohibited. See also call protection.


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