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Often because interest rates have gone down, and they can issue new bonds or borrow money cheaper than the interest rate that is on the bonds. The other likely situation is that they made enough money that they have the cash to pay off the bonds and don't need to borrow it any more.
What else can I help you with?
What are the terms and conditions of a continuously callable bond?
A continuously callable bond is a type of bond that can be redeemed by the issuer at any time, usually after a specified initial period. The terms and conditions of a continuously callable bond typically include the issuer's right to call the bond at any time, the call price at which the bond can be redeemed, and any associated call protection provisions for the bondholder.
Why do corporations issue callable preferred stock?
Corporations issue callable preferred stock to have the flexibility to redeem or "call back" the stock at a predetermined price, allowing them to adjust their capital structure and potentially lower their financing costs in the future.
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.
Can you explain what "continuously callable" means in the context of financial instruments?
"Continuously callable" refers to a feature of a financial instrument that allows the issuer to redeem or call back the instrument at any time, rather than only on specific dates. This gives the issuer flexibility to adjust the terms of the investment based on market conditions.
Do Convertible bonds lack a call feature?
NO, THEY ALWAYS have a call feature.
Is call premium on callable bonds tax deductible in Canada for corporations?
No.
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 callable capital?
Callable capital is that portion of subscribed capital stock subject to call only as and when required by the Bank to meet its obligations on borrowing of funds for inclusion in its ordinary capital resources or guarantees chargeable to such resources. In the event of a call, payment must be made by the shareholder in the currency required to discharge the obligation of the Bank for which the call was made. Callable capital is available to protect the Bank's creditors - mainly investors in the Bank bonds and holders of guarantees - in the unlikely event of a large-scale default by the Bank's borrowers.
What is a call date?
A call date is a date on which a callable bond may be redeemed before its maturity.
What are the terms and conditions of a continuously callable bond?
A continuously callable bond is a type of bond that can be redeemed by the issuer at any time, usually after a specified initial period. The terms and conditions of a continuously callable bond typically include the issuer's right to call the bond at any time, the call price at which the bond can be redeemed, and any associated call protection provisions for the bondholder.
Why do corporations issue callable preferred stock?
Corporations issue callable preferred stock to have the flexibility to redeem or "call back" the stock at a predetermined price, allowing them to adjust their capital structure and potentially lower their financing costs in the future.
What types of CD's are there?
The most common is the general FDIC insured Certificate of Deposit. Callable CD's are similar to a traditional CD, except that the bank reserves the right to "call" the investment. After the initial non-callable period, the bank can buy (call) back the CD. Callable CDs pay a premium interest rate. Banks manage their interest rate risk by selling callable CDs. On the call date, the banks determine if it is cheaper to replace the investment or leave it outstanding. Brokered CD's are brokerage firms that can sometimes negotiate a higher rate of interest for a CD by promising to bring a certain amount of deposits to the institution.
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 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.
Why did he choose me to call him when he was having a bad day and he was drunk?
Because misery loves company.
What does company main number mean?
A company's main number means a phone number in which a company can be contacted at one line. From the main line, users can choose where their call is directed.
Can you explain what "continuously callable" means in the context of financial instruments?
"Continuously callable" refers to a feature of a financial instrument that allows the issuer to redeem or call back the instrument at any time, rather than only on specific dates. This gives the issuer flexibility to adjust the terms of the investment based on market conditions.
