Investors looking at fixed-income opportunities will encounter call bonds as part of a range of bond options. A call bond differs from a “classic” bond in that the issuer has the option to buy bonds back before a maturity date at a specific call price. It presents its own, separate risks and rewards, which investors should consider carefully. Learn about Call Bonds Call bonds work similarly to normal bonds, where they pay periodic interest to the bondholder and repay the principal at maturity. However, they have an additional option that permits the issuer to repay debt before its scheduled time,…
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