Callable bonds are securities that allow the issuer to repay the bond prior to its original maturity date.

1. Why would the issuer wish to repay the bond prior to its original maturity date?
2. What types of "callable bonds" can you encounter in your personal life?

Answer rating: 100% (QA)

Callable Bonds Callable bonds are bonds that can be paid off by the issuer prior to the bonds maturity date An issuer may choose to call a bond when current interest rates drop below the interest rate ... View the full answer