When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...

Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...

What Is a Call Provision? A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. Call ...

For example, to analyze a refunding proposal, we need to determine the cost of the outstanding and the refunding bonds on a present-value basis. Earlier this year, I showed that tax-exempt and taxable ...