Business, Legal & Accounting Glossary
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.
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.
Definitions for European Callable Bond are sourced/syndicated and enhanced from:
This glossary post was last updated: 17th November, 2021 | 0 Views.