Callable Bond
InvestingA bond that the issuer can redeem before maturity, typically when interest rates drop, reinvesting at a lower rate.
Example
Example: Consider an investor building a $100,000 portfolio. Callable Bond — a bond that the issuer can redeem before maturity, typically when interest rates drop, — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.