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callable Hear it!

callable definition - finance
A bond that the issuer can call before maturity. The issuer can decide to redeem the bond and pay the investor the par, or face value, of the bond, or, in some cases, a slight premium. If interest rates fall, companies often call bonds because they can issue new bonds at a lower interest rate and save money. If a bond is called it is referred to as called away.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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