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What is a non call life bond?

Updated: 9/17/2023
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11y ago

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A noncallable bond is a debenture which the company or institution that issued it cannot force you to redeem before the final call date (i.e. they can't call it). For example, if you purchased a 30-year bond in 2005 with a 4.5% coupon, the issuer today would like to call that bond because they can borrow money more cheaply (i.e. at a lower interest rate). But if the bond is noncallable they cannot do that. The trade-off is that a noncallable bond generally has a slightly lower nominal coupon.

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Q: What is a non call life bond?
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