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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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References in periodicals archive

SAN Mexico will have the option to redeem the notes on the first optional call date, which is five years after the issue date.

Fitch Assigns Final Rating of 'BBB-' to SAN Mexico's Basel III Tier 2 Notes

The notes, which will qualify as tier-II capital under Basel III standards, and have a maturity of 10 years with an optional call at year five, will pay a non-deferrable coupon of 7.25 percent.

-UBS launches USD2bn Basel III-compliant notes

If you are interested in joining this optional call, please register on or before September 18 in order to obtain the access code.

NLC's MetLife Youth-City Connection offers assistance

The software then automatically sends the booking to the taxi and, as the taxi arrives at the destination, the driver presses a button on the dashboard console that alerts to the main system and triggers an automatic, optional call to the customer saying that the taxi is outside.

Taxi alert service incorporates technology from THUS

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