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Introduction to Callable Bonds

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What is callability and what is its purpose? Learn how investors can benefit from the callability feature found in many bonds.

What you will learn

  • Bonds May Be Redeemed before Maturity
  • Characteristics of Callable Bonds
  • Why Companies Issue Callable Bonds
  • Investor Benefits of Callable Bonds

What do you know?

Introduction to Callable Bonds

Owning a bond does not always entitle you to sit back and collect interest. If your bond is callable, it may not live to see maturity. That is why it is important to understand the callability feature of bonds, including why bonds get called in the first place. Callability can benefit both the investor and company.