Callable
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Term
Main definition
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A bond issuer's ability to exercise a right to retire the bonds (redeeming them at a specific price).
When an issuer calls a bond, the call price always includes the total of the principal amount of the bonds, the accrued but unpaid interest, plus a call premium. Usually a call price is expressed in terms of the original principal amount of the bond being retired, all accrued interest being repaid concurrently, such as callable at 105, which means $1,000 in original principal amount can be called for $1,050 plus accrued and unpaid interest.
