Call Risk

Business, Legal & Accounting Glossary

Definition: Call Risk

Call Risk

Full Definition of Call Risk

The cash flow risk resulting from the possibility that a callable bond will be redeemed before maturity. Callable bonds can be called by the company that issued them, meaning the bonds have to be redeemed by the bondholder, usually so that the issuer can issue new bonds at a lower interest rate. This forces the investor to reinvest the principal sooner than expected, usually at a lower interest rate.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Call Risk. Payroll & Accounting Heaven Ltd.
December 06, 2021
Chicago Manual of Style (CMS):
Call Risk. Payroll & Accounting Heaven Ltd. (accessed: December 06, 2021).
American Psychological Association (APA):
Call Risk. Retrieved December 06, 2021
, from website:

Definition Sources

Definitions for Call Risk are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.