What does callable bond mean?

callable bond meaning in Law Dictionary

callable relationship (also referred to as redeemable bond) is a kind of relationship (financial obligation protection) that enables the issuer of this bond to hold the privilege of redeeming the bond at some time ahead of the bond hits the day of readiness.

callable bond meaning in Business Dictionary

Bond which can be called back (used) because of the issuer on repayment of a call premium across par worth towards the bondholder. Issuers often choose this program whenever (1) the marketplace interest drops underneath the relationship's interest, or (2) the issuer's rankings is raised because of the relationship rating companies and, consequently, the issuer can enhance resources at cheaper. Ordinarily, bonds may not be used before a certain period (usually ten years), as they are callable only at particular dates provided in the bond indent. If any call time is missed, the relationship might not be callable before the after that telephone call day.