
Summary of Callable Bonds
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Summary of Callable Bonds
Some investors may decide never to buy a callable bond; however, this isn't always practical. When deciding whether to invest in callable bonds, you will want to check for a call premium, the call date, yield-to-call, and other key factors before making up your mind. You may want to create several scenarios that compare your earnings for different call dates.
What you have learned
- Bonds May Be Redeemed before Maturity
- Characteristics of Callable Bonds
- Why Companies Issue Callable Bonds
- Investor Benefits of Callable Bonds