Callable Bond

This bond can be redeemed by the issuer under certain conditions. When purchasing this type of bond you would clearly want to understand what the conditions could be.

An example is a bond that can be repaid early, at the bond issuer´s discretion. This allows an issuer the refinancing of debt if interest rates have gone down below the coupon rate.

Take control of your finances. Ask questions and talk to your agent, broker or planner.