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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

  1. Bonds May Be Redeemed before Maturity
  2. Characteristics of Callable Bonds
  3. Why Companies Issue Callable Bonds
  4. Investor Benefits of Callable Bonds

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