answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between a callable bond and a retractable bond?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is a callable?

Callable is the designation of a bond that can be paid off earlier than its maturity date.


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.


What is a callable bond?

Most bonds issued today are "callable," which means corporations can recall them if interest rates rise before the maturity dates.


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.


Is the term for a bond between two atoms that differ in electronegativity?

If there is a slight electronegativity difference, the bond is a nonpolar covalent bond. If there is a large electronegativity difference, it is an ionic bond. If the difference is somewhere between, it is a polar covalent bond.


How can the type of bond be predicted?

Ionic bond: the difference between electronegativities of the atoms is over 2.Covalent polar bond: the difference between electronegativities of the atoms is under 2.Covalent non-polar bond: the difference between electronegativities of the atoms is cca. zero


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.


What is the difference between ionic bond and covalent bond?

Ionic bond: involve an electrostatic attraction between atoms.Covalent bond: electrons are shared between atoms.


What is the difference between a glycosidic bond and a peptide bond?

Peptide bond is the bond formed between amino acids. Glycosidic bond is the bond formed between simple sugars Peptide bond is the bond formed between amino acids. Glycosidic bond is the bond formed between simple sugars