Callable bonds, also referred to as redeemable bonds, are fixed-rate bonds, usually convertible, in which the issuer is entitled to repay the debt prior to the maturity date at a set price, which can be at the par or at a premium. The parties usually agree on fixing a period during which the borrower is not entitled to call the bond (grace period).

Bibliography
FABOZZI F., MODIGLIANI F. and JONES F. (2010), Foundation of Financial Markets and Institutions, Pearson International Edition.

Editor : Bianca GIANNINI
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