Callable bond - How To Discuss

Callable bond,

Definition of Callable bond:

  1. A callable bond is a debt instrument in which the issuer reserves the right to return the investor's principal and stop interest payments before the bond's maturity date. Corporations may issue bonds to fund expansion or to pay off other loans. If they expect market interest rates to fall, they may issue the bond as callable, allowing them to make an early redemption and secure other financings at a lowered rate. The bond's offering will specify the terms of when the company may recall the note.

  2. Bond that can be called back (redeemed) by the issuer on payment of a call premium over the par value to the bondholder. Issuers often choose this option when (1) the market interest rate falls below the bonds interest rate, or (2) the issuers ratings is raised by the bond rating agencies and, therefore, the issuer can raise funds at lower cost. Ordinarily, bonds cannot be redeemed before a certain period (usually 10 years), and are callable only at certain dates given in the bond indent. If any call date is missed, the bond may not be callable until the next call date.

  3. A callable bond, also known as a redeemable bond, is a bond that the issuer may redeem before it reaches the stated maturity date. A callable bond allows the issuing company to pay off their debt early. A business may choose to call their bond if market interest rates move lower, which will allow them to re-borrow at a more beneficial rate. Callable bonds thus compensate investors for that potentiality as they typically offer a more attractive interest rate or coupon rate due to their callable nature.

How to use Callable bond in a sentence?

  1. A callable bond is a debt security that can be redeemed early by the issuer before its maturity at the issuer's discretion.
  2. A callable bond benefits the issuer, and so investors of these bonds are compensated with a more attractive interest rate than on otherwise similar non-callable bonds.
  3. A callable bond allows companies to pay off their debt early and benefit from favorable interest rate drops.

Meaning of Callable bond & Callable bond Definition

Callable Bond,

What is The Meaning of Callable Bond?

Callable Bond definition is: A calibrated bond, also called a calibrated bond, is a bond that can be repaid by the issuer before a maturity date. Repayable bonds help the issuing company to save its debts in advance. When a market price falls, a company may choose to withdraw its promises so that it can continue at a lower level. Option bonds compensate investors for this ability because they offer a more attractive interest rate or coupon rate due to their attractive nature.

  • Cable security is a loan security that the issuer can repay at his discretion before maturity.
  • Repayment bonds allow companies to repay their loans faster and take advantage of favorable interest rate cuts.
  • Bubble bonds benefit the issuer and that is why investors in these bonds are paid at a more attractive interest rate than similar non-bubble bonds.

Literal Meanings of Callable Bond

Callable:

Meanings of Callable:
  1. Refers to bonds that can be redeemed before the maturity date.

Sentences of Callable
  1. If your payable bond receives at least 1% more than a new issue of the same standard, it is likely to be redeemed in the near future.

Bond:

Meanings of Bond:
  1. Stick to something else, especially glue, heat or pressure

  2. Join or join through chemical bonds.

  3. Lay bricks in an overlapping pattern to form a solid structure.

  4. (Taxable goods) Customs.

  5. Relationships between people or groups based on shared feelings, interests or experiences.

  6. The contact between two surfaces or objects, including by adhesive, heat or pressure.

  7. According to the power of law.

  8. The pattern in which the bricks are placed to ensure the strength of the resulting structure.

Sentences of Bond
  1. Press the ingredients to join the layers

  2. Neutral molecules attached to the central atom

  3. The overhanging castle is shaped like a drum, built of stone with horizontally inlaid layers of red bricks.

  4. Assets may need to be sold or consolidated to provide liquidity to pay this tax.

  5. There is a relationship of understanding between them

  6. There is no effective contact between concrete and steel

  7. Marriage as a legal bond may be obsolete, but I doubt it.

Synonyms of Bond

word of honour, solder, promise, association, glue, fix, avowal, gum, weld, stick, oath, guarantee, alliance, fuse, paste, secure, pledge, connect, vow, join, word, attach, bind, affiliation, cement, partnership, solemn word, relationship, affix, assurance

Callable Bond,

Definition of Callable Bond:

Callable Bond can be defined as, Cable bonds, also called callable bonds, are bonds that can be paid by the issuer when a maturity date is reached. Cable lenders allow the company to save their loans in advance. A company may need to repurchase its bonds when the market price falls so that it can borrow at a lower interest rate. Therefore, cable bonds compensate investors for these units because, due to the nature of their cable, they offer more attractive interest rates or coupon rates.

  • Cable bonds are debt instruments that the issuer can repay in advance at the discretion of the issuer.
  • A cable bond allows companies to pay off their debts quickly and reap the benefits of favorable interest rate cuts.
  • Wired bonds benefit the issuer and that is why investors in these bonds are paid at a more attractive interest rate than similar wireless bonds.

Literal Meanings of Callable Bond

Callable:

Meanings of Callable:
  1. Bonds mean that they can be repaid before the maturity date.

Bond:

Meanings of Bond:
  1. The contact between two surfaces or objects that come together, mainly through glue, heat or pressure.

  2. Sticking to or clinging to something else, especially adhesive, heat or pressure.

  3. Bonded or linked by chemical bonds.

  4. In customs (taxable goods)

Synonyms of Bond

commitment, accord, engagement, obligation, fellowship, settlement, parole, covenant, concordat, troth, deal, nexus, union, contract, treaty, pact, bail, agreement, bargain, coalition, compact, link, connection, fasten, transaction, tie, friendship, understanding, attachment

Callable Bond,

What is The Definition of Callable Bond?

  1. You can define Callable Bond as, James Chen, CMT, is an experienced trader, investment advisor and global market strategist. He is the author of books on John Wiley & Sons' trade and technical business and has been a visiting researcher at CNBC, Bloomberg TV, Forbes and Reuters, among other financial companies.

    • Cable bonds are debt instruments that, at the discretion of the issuer, can be repaid by the issuer after maturity.
    • A cable bond allows companies to quickly repay their loans and take advantage of favorable interest rate cuts.
    • Wired bonds benefit the issuer and therefore the investors in these bonds are paid at a more attractive interest rate than similar wireless bonds.

Literal Meanings of Callable Bond

Callable:

Meanings of Callable:
  1. Bonds mean that can be paid before the maturity date.

Bond:

Meanings of Bond:
  1. The connection between two surfaces or objects that come together, mainly through glue, heat or pressure.

  2. Adhesive, heat, or pressure, especially attached to or tightly attached to something else.

Sentences of Bond
  1. Neutral molecule attached to the central atom

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