Glossary of Municipal Securities Terms

CALLABLE BOND

bond that the issuer is permitted to redeem before the stated maturity at a specified price, usually at or above par, by giving notice of redemption in a manner specified in the bond contract. In the case of zero coupon bonds, the call will be effected at equal to or greater than the compounded accreted value. See: REDEMPTION; REDEMPTION PROVISIONS. Compare: NON-CALLABLE BOND.

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