optional call

optional call definition - business

optional call

The call of a bond by an issuer who wishes to terminate a loan, generally because interest rates have declined since the time of issuance. Optional calls are frequently made at prices slightly higher than par value. Some bond issues are not subject to call; most issues provide a period of years after issuance during which optional calls are prohibited. See also call protection.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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