European Callable Bond

Business, Legal & Accounting Glossary

Definition: European Callable Bond


European Callable Bond


Full Definition of European Callable Bond


A bond that can be called, or purchased, by the issuer before the bond has reached maturity. The issuer usually has to pay a premium to purchase the bond before it reaches maturity. Issuers will call a bond if interest rates have decreased. Therefore, the callable bond has an interest rate risk to the bondholder. Unlike the American callable bond which can be called at any time, the European callable bond can only be called on a preset date. Also called redeemable bond.


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Definition Sources


Definitions for European Callable Bond 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: 17th November, 2021 | 0 Views.