Callable (or Redeemable) Bond Types, Example, Pros & Cons
Автор: Simple Explain
Загружено: 2023-12-20
Просмотров: 520
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Callable bonds, also known as redeemable bonds, allow the issuer to redeem the bond before its stated maturity date. They offer a higher coupon or interest rate to investors, and provide benefits to the issuing company if market interest rates decline. However, callable bonds expose the investor to the risk of replacing the investment at a lower rate when the bond is called.
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