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Finance & Banking vocabulary · Corporate Finance

Callable bond

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, callable bond means: A bond that the issuer may redeem before maturity under specified contractual conditions.

In Turkish: erken itfa hakkı ihraççıya ait tahvil

How it is used

The call belongs to the issuer; check the call dates and redemption price.

Example sentences

  1. The company redeemed the callable bond on its first permitted call date.

    The issuer exercises a right to end the debt early.

  2. The callable bond's price reflected the possibility of early redemption.

    The issuer's option affects the investor's expected cash flows.

Common collocations

  • callable bond terms
  • callable bond redemption
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
  • maturityThe date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.