Optional Call

Business, Legal & Accounting Glossary

Definition: Optional Call


Optional Call


Full Definition of Optional Call


A bond feature which allows the issuer to redeem the bond before it matures. Bonds with optional calls are issued at a premium to compensate for lost interest payments. Optional calls are usually exercised when current interest rates are lower than the rates at time of issuance.


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
https://payrollheaven.com/define/optional-call/
Modern Language Association (MLA):
Optional Call. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/optional-call/.
Chicago Manual of Style (CMS):
Optional Call. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/optional-call/ (accessed: March 28, 2024).
American Psychological Association (APA):
Optional Call. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/optional-call/

Definition Sources


Definitions for Optional Call 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: 16th November, 2021 | 0 Views.