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Most bonds issued today are "callable," which means corporations can recall them if interest rates rise before the maturity dates.
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What is a callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
What is the difference between a callable bond and a retractable bond?
A callable bond is where the issuer has the ability to redeem the bond prior to maturity. A callable bond is where the bond hold has the ability to force the issuer to redeem the bond before maturity. Hope this helps.
What is the definition of 'callable bond'?
A callable bond, also known as a redeemable bond, is a debt security that entitles the issuer of the bond to retain the rights to redeem it before the maturity date of the bond is reached.
How are callable bonds different from regular bonds?
Callable bonds are similar to regular bonds in many ways. The main different is that callable bonds can be redeemed before the bond has completely matured.
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
What is a call date?
A call date is a date on which a callable bond may be redeemed before its maturity.
What is '10NC5'?
It is a code used by bankers, meaning a 10 year bond Not Callable for 5 years.
When are issuers more likely to call an outstanding bond issue?
If the bond is 'callable' th issue will likely call it when yields fall as they can then refinance more cheaply.
Journal Entry for callable bond?
Check out www.bondterrier.com which is an interactive learning tool dealing with Accounting for the Life-Cycle Events of Bond Liabilities that are (a) Convertible into Common Equity at the Holder's Option and (b) Callable at the Issuer's Option. Journal entries are provided for Issuance; Interest Payments; Discount/Premium Amortization; Conversion; Call; Maturity.
Are Municipal Dollar Bonds Callable?
Yes Dollar bonds can be callable
Are bid bonds callable demand?
similar to other forms of surety bonds, bid bonds are callable on demand.
What is callable preferred stock?
Preferred stock may be "callable." At the option of the corporation, callable preferred stock may be surrendered to the corporation, usually at a price a little above par value (or a stated value).
