The Reserve Bank of India (RBI) has allowed banks to offer non-callable
deposits, fixed-tenure deposit schemes where premature withdrawal is not allowed.
The subordinated sukuk, an Islamic bond based on the Islamic principle of Musyarakah, has a tenure of 10 years from the issue date on a 10 non-callable
A complete discussion is beyond the scope of this article, but I would like to make an important point about bonds with embedded options or call features, and non-callable
The company priced the senior unsecured notes at 98.545 to yield 9.125 percent and deemed them non-callable
for five years.
One of the banks working on the KCA deal said the bonds will mature in 2018 and be non-callable
for four years.
In this study, the authors test whether callable bonds have lower agency costs of debt than non-callable
Of the five, Corporate America and Corporate Central have even raised paid-in capital from members, getting a head start on proposed NCUA regulations that will likely increase the required ratio of non-callable
, GAAP-approved PIC to moving average assets.
Since the investor faces the risk of an uncertain stream of cash flows, the common market practice is to demand a higher yield in a callable bond than in a non-callable
bond in order to compensate the higher risk caused by the embedded call options in a specific issue.
Also, the notes are usually non-callable
for a period (2-3 years typically) during which time an investor should receive the stated distributions and the company is prohibited from "calling in" the note and repaying all the capital owed.
They were non-callable
for the first four or five years, then became callable at a premium that declined to par by maturity.
By selecting non-callable
securities, we ensure that our bonds have positive convexity and can maximize gains.
where k and CF are defined as above, [r.sub.0.sup.c] is the current callable risk-free rate with the maturity of the final cash flow of the project, and [r.sub.0] is the current duration-matched non-callable