FT MarketWatch

Redeemable bond

A bond which the Issuer has the Right to Redeem prior to ITS maturity date, under certain conditions. When issued, the bond will explain when it can be redeemed and what the price will be. In most cases, the price will be slightly above the par value for the bond and will increase the earlier the bond is called. A company will often Call a bond if it is paying a higher Coupon than the current market Interest rates. Basically, the company can reissue the same bonds at a lower Interest rate, saving them some amount on all the Coupon payments; this process is called "refunding." Unfortunately, these are also the same circumstances in which the bonds have the highest price; Interest rates have decreased since the bonds were issued, increasing the price. In many cases, the company will have the Right to Call the bonds at a lower price than the Market price. If a bond is called, the Bondholder will be notified by mail and have no choice in the matter. The bond will stop paying Interest shortly after the bond is called, so there is no reason to hold on to it. Companies also typically advertise in major financial publications to notify bondholders. Generally, Redeemable bonds will carry something called Call protection. This means that there is some period of time during which the bond cannot be called. also called Callable bond. opposite of Irredeemable bond or Non-callable bond.

Related Terms: 41 Bondholder, Call, Callable, Callable bond, Call protection, Coupon, Car, Fund, FIN, High, Irredeemable bond, Issuer, Interest, Inc., Interest rate, ITS, Low, Maturity, Maturity date, Mean, Market, Non-callable, Non-callable bond, Owe, PPO, Public, Redeem, Redeemable, Redeemable bond, Refunding, Right, Rent, ROC, ROCE, Rally, Ring, SIC, Sue, Short, Top, When issued
Other Related Pages: Category: Bonds Starting With: R
Semi Related Terms: 1078 CLICK HERE TO VIEW
10-K, 52-week high, 52-week low, Accredited Personal Financial Planning Specialist, Allowance for depreciation, Average collection period, Adjustable rate, Above par, Accreted value, Accrual bond, Accrual of discount, Accrued interest, Accrued market discount, Accumulation bond, Advance refunding, After-tax basis, Agency bond, American Municipal Bond Assurance Corporation, Amortization of premium, Amortized value, Asked price, Asking price, Assumed bond, At par, Authority bond, All or any part, At best, At call, Adjustable rate preferred stock, Adjusted futures price, All-risks coverage, At risk, Add-on service, Abstract of title, Action to quiet title, As is, Assignment to creditors, Attorney in fact, Adjustable Rate Mortgage, Adjustment date, Advance rate, After acquired clause, After-acquired collateral, Annual Percentage Rate, Applicable federal rate, Assignment of mortgage, Aggressive growth fund, A shares, Asset allocation fund, Assets under management, Average price per share, Aggregate exercise price, At the money, Absorption rate, After-tax contributions, Across the board, Additional paid-in capital, Average up, Ad valorem, After-tax, Amount recognized, Assessed value, Arithmetic mean, Active market, After-hours trading, Against the box, At the bell, At the close, At the figure, At the full, At the market, At the opening order, Auction market, Automated Pricing and Reporting System, Away from the market, Back pay, Below the line, Books of final entry, Books of original entry, Book value per share, Burn rate, Bank holding company, Banking Act of 1933, Baby bond, Balanced fund, Balloon maturity, Bearer bond, Below par, Benchmark interest rate, Bid-to-cover ratio, Blanket bond, Blend fund, Bond anticipation note, Bond Buyer, Bond circular, Bond crowd, Bond equivalent yield, Bond fund, Bondholder, Bond indenture, Bond market, Bond ordinance, Bond quote, Bond resolution, Bond swap, Brady bond, Bullet bond, Bureau of Public Debt, Brought over the wall, Buying on margin, Buy on close, Buy on opening, Buy stop order, Buy the book, Basic earnings per share, Balance of payments, Bank Rate, Base interest rate, Base period, Bear market, Board of Governors, Bulldog market, Breaking the syndicate, Bill of exchange, Bill of sale, Breach of trust, By the book, Balloon payment, Base rate, Blended rate, Broker loan rate, Business finance companies, Bust-up takeover, Breakup value, B shares, Buy and write, Blackout period, Break-even tax rate, Blow-off top, Breadth-of-market theory, Beat the gun, Bull market, Capitalized interest, Certified Public Accountant, Combined financial statement, Consolidated financial statement, Cost Of Goods Sold, Cost of sales, Current debt, Current liabilities, Cleared date, Compound interest, Current income, Call, Callable, Callable bond, Call date, Called away, Called bond, Call price, Call protection, Call risk, Capital market, Catastrophe bond, CAT bond, Certificateless municipal bond, Certificate of Participation, Collateralized Bond Obligation, Combination bond, Committee on Uniform Securities Identification Procedures, Commodity-backed bond, Companion bonds, Consolidated bond, Conversion parity price, Conversion price, Conversion value, Corporate bond equivalent, Coupon, Coupon bond, Coupon pass, Coupon rate, Coupon yield, Current coupon bond, Current issue, Current market value, Current maturity, Current production rate, Current yield, Call money rate, Code of procedure, Customer protection rule, Capitalization of income, Capitalization rate, Cap rate, Civilian unemployment rate, Consumer Price Index, Cost of Living Adjustment, Cost-of-living index, Council of Economic Advisers, Current account, Current dollars, Car, Cash and carry trade, Cash market, Cash price, Chasing the market, Cheapest to deliver, Chicago Board of Trade, Contract market, Current delivery, Cash surrender value, Cash value, Cash value life insurance policy, Cost-of-living rider, Callable stock, Certificate of stock, Cost of carry, Certificate of title, Contract for deed, Cancellation of debt, Certificate of Claim, Consumer interest, Cost of debt capital, Cost of funds, Cure period, Controlled company, Capital appreciation fund, Clone fund, Closed-end fund, Closed-end investment company, Closed fund, Crossover fund, C shares, Call option, Call ratio backspread, Call swaption, Class of options, Close to the money, Covered call, Certificate of Occupancy, Closing date, Cloud on title, Cash or Deferred Arrangement, Choice market, Class A Shares, Class B Shares, Crash of 1929, Crash of 1987, Child and dependent care credit, Coefficient of determination, Cup and handle, Certificate of delivery, Close a position, Close market, Closing price, Continuous market, Cornering the market, Curbs in, Date draft, Deposit in transit, Date of issue, Date of payment, Dealer market, Debt market, Deep-discount bond, Deferred interest bond, Delivery vs. payment, Direct issuer, Discount bond, Discounted bond, Distribution date, Dollar bond, Dollar price, Dual currency bond, Due date, Division of Enforcement, Division of Investment Management, Division of Market Regulation, Do Not Reduce, Date of record, Distribution period, Dividend in arrears, Dividend rate, Desk (the), Discount rate, Division of labor, Delivery price, Dated date, Direct Public Offering, De-escalation clause, De facto, Doing business as, Due process, Durable Power of Attorney, Date of maturity, Debtor in possession, Debtor-in-possession financing, Deed of Release, Deed of Trust, Deferred payment, Discharge of bankruptcy, Discharge of lien, Down payment, Due-on-sale clause, Dual-purpose fund, Deep in the money, Deep out of the money, Downside protection, Deed of Surrender, Department of Housing and Urban Development, Deferred payment annuity, Dogs of the Dow, Double up, Double top, Double top breakout, Daily high, Daily low, Dead cat bounce, Deep market, Depth of market, Double auction market, Economic value, Effective annual interest rate, Eurodollar certificate of deposit, Exact interest, Escrowed to maturity, Eurodollar bond, Euroyen bond, Ex-legal, External market, Either-or order, Exchange rate, Effective par, Economic growth rate, E-mini, Exchange for futures, Exchange for physical, Exchange of spot, Ex-pit transaction, Emerging market, Effective date, Equity funding, Effective tax rate, Ex-all, Explicit interest, Enhanced index fund, Environmental fund, Equity fund, Exchange fund, Expiration date, Expiration time, Ex-warrants, Economic rent, Employee Retirement Income Security Act of 1974, Ex-rights, Ex-rights date, Even up, Financial Accounting Standards Board, Financial asset, Financial capital, Financial statement, First In First Out, Federal Savings and Loan Association, Financial institution, Face-amount certificate, Fidelity bond, Financial instrument, First call date, Flight to quality, Floating-rate bond, Flow of funds, Free bond, Full price, Federal Call, Fill or kill, Financial analyst, Front-ending an order, Fund supermarket, Floating exchange rate, Foreign exchange rate, Forward exchange rate, Forward P/E, Fully diluted earnings per share, Factors of production, Favorable balance of trade, Federal Reserve Discount Rate, Free market, Free market price, Financial futures, Forward price, Futures price, Face amount, Fee-for-service, Fair market value, Form 8-K, Form S-1, Friends and family offering, Fully distributed issue, Fund, Finance company, Financial risk, Fixed rate, Fixed-rate loan, Fixed-Rate Mortgage, Floating rate, Forward interest rate, Forward Rate Agreement, Full faith and credit, Family of funds, Financial advisor, Focused fund, Fund family, Fund manager, Fund of funds, Free and clear, Free right of exchange, FIN, Fair value, Fourth market, Generally Accepted Accounting Principles, General Obligation Bond, Global bond, Gold bond, Government Bond, Guaranteed bond, General account, General Securities Representative Examination, G-7, GDP implicit price deflator, General Accounting Office, General Agreement on Tariffs and Trade, G-8, Global fund, Grace period, Going public, General lien, General mortgage, Graduated payment, Growth and income fund, Growth fund, Grant date, Gather in the stops, Going short, Graveyard market, High-grade bond, High yield, Housing bond, Hart-Scott-Rodino Act of 1976, Hit the bid, House call, House of issue, Health Insurance Portability and Accountability Act, High, High-flyer, High-tech stock, Holding company, Hot issue, Holder in due course, High credit, High-ratio mortgage, Home equity line of credit, Hedge fund, Housing Market Index, Holding period, Head and shoulders, High-low index, Hammering the market, Held at the opening, Holding the market, Horizontal price movement, Imputed value, Interest-bearing, Income bond, Index bond, Index-linked bond, Industrial revenue bond, In escrow, Installment bond, Insured bond, Interchangeable bond, Interest rate collar, Interest rate risk, Interest rate swap, Intrinsic value, Investment-grade bond, Investment value, Irredeemable bond, Issue date, Issuer, In-house, Investment Advisor Act of 1940, Investment Company Act of 1940, In line, Inefficient market, Inflation rate, International Monetary Fund, Interest rate futures, Inverted market, Interbank Rate, Internal market, Insurable interest, Initial Public Offering, Inside market, Insider Trading sanctions Act of 1984, Interest, Interest expense, Internal Rate of Return, Indication of interest, Inc., In intestacy, Inter vivos trust, Imputed interest, Interest deduction, Interest-only loan, Interest rate, Interest rate cap, Interest rate ceiling, Interest rate floor, In play, In-process research and development, Income fund, Index fund, Institutional fund, International fund, Investment company, Investment fund, Interest rate option, I/O strip, Inchoate interest, Interest-only strip, Immediate payment annuity, In-service withdrawal, Imbalance of orders, Imperfect market, In and out, In sympathy, In the tank, ITS, Junior refunding, Junk bond, Jointly and severally, Jumping the gun, Joint will, Joint and several liability, Joint and survivor annuity, Joint Stock Company, Last In First Out, Liquidation value, Lender of last resort, Law of one price, Long Bond, Lending at a rate, Limit-on-close order, Limit price, Long Market Value, Law of demand, Law of supply, Limit up, London International Financial Futures and Options Exchange, Limited company, London Inter-Bank Offer Rate, Letter of comment, Lockup period, Living will, Line of credit, Loan-to-cost, Loan-to-value, Loan value, Loan-value ratio, Lock-in, Lifecycle fund, Load fund, Leading the market, Limited Liability Company, Locked in, Long-term gain or loss, Level I quotes, Liquid market, Locked market, Low, Mutual company, Maintenance bond, Market basket, Market capitalization, Market conversion price, Maturity, Maturity date, Maturity gap, Maturity value, Medium-term bond, Moral obligation bond, Mortgage bond, Municipal bond, Municipal bond fund, Municipal bond insurance, Municipal Bond Insurance Association, Municipal revenue bond, Muni fund, Maintenance call, Make a market, Margin call, Margin rate, Market if touched order, Market letter, Market maker, Market maker spread, Market on close order, Market order, Mark-to-market, Medium of exchange, Marginal propensity to consume, Market economy, Most distant month, Major medical insurance, Market rate, Minimum payment, Money at call, Mortgage interest deduction, Mortgage rate, Management company, Mutual fund, Mutual fund custodian, Mutual fund symbol, Market cap, Market neutral, Market portfolio, Market timer, Market timing, Mill rate, Market analysis, Mean, Mean return, Market, Market inefficiency, Market opening, Market return, Market-share weighted index, Market surveillance, Market-value weighted index, Market Volatility Index, Maximum price fluctuation, Mixed market, Most active, Net book value, Net current assets, Net interest margin, Non-cash expense, Non-financial asset, Negotiable certificate of deposit, Negotiable Order of Withdrawal, National Market System, Nine-Bond Rule, Nominal rate, Non-callable, Non-callable bond, Non-interest-bearing note, Notice of Sale, National Association of Securities Dealers, National Association of Securities Dealers Automated Quotations system, No limit order, No quote, Non-cumulative preferred, Non-equity option, Normal market, Notice period, No-Fault, Net Asset Value, New issue, No-Action Letter, Non-compete agreement, Non-disclosure agreement, Notary Public, Null and void, Negative carry, No-lien affidavit, Non-conforming loan, Non-revolving credit card, Notice of Default, Notional principal amount, No-load, Non-resident alien tax, Naked call, Non-qualified stock option, Non-statutory stock option, National Association of Real Estate Investment Trusts, Non-investment property, Non-contributory plan, Non-insured plan, Non-qualified retirement plan, Nasdaq Small Cap Market, No-load stock, Nominal value, Narrow market, National Market Advisory Board, Negotiated market, New high, No book, Off the books, One time charge, Other current assets, Office of Thrift Supervision, Ordinary interest, Obligation bond, Offering price, Original Issue Discount, Out-of-favor, Over-the-Counter, On-floor order, On margin, Or better, Open market operation, Operating rate, Open interest, Offshore company, Original issue stock, Offering date, Opinion of title, On account, On-the-spot loan, Owe, Open-end fund, Open-end management company, Option income fund, Option holder, Option price, Out of the money, Old age, survivors, and disability insurance, On-balance volume, On close, One man picture, On open, On the opening, Open market, Operationally efficient market, Outside market, Pooling of interests, Profit and loss statement, Pro forma, Par bond, Pass-through coupon rate, Paying agent, Payment date, Payment-in-kind security, Performance bond, Pickup bond, Premium bond, Premium over bond value, Premium over conversion value, Price Value of a Basis Point, Prior lien bond, Privileged bond, Provisional call feature, Public bond, Public offering, Public purpose bond, Put bond, Payment for order flow, Public limited partnership, Public Securities Association, Payable date, Prior preferred stock, P&L, Primary earnings per share, Provision for income taxes, Price index, Producer Price Index, Public goods, Public sector, Parity price, Physical market, Price limit, Periodic payment plan, Personal Injury Protection, PPO, Pre-existing conditions, Primary market, Public company, Public offering price, Per stirpes, Pour-over will, Power of Attorney, Paid up, Personal interest, Positive carry, Prepaid interest, Prime rate, Principal amount, Prioritization of debt, Prior redemption privilege, Projected maturity date, Private Market Value, Pooled fund, Prime rate fund, Publicly-traded fund, Pure index fund, Price spread, Pension fund, Paid-in capital, Paid-in surplus, Payback period, Percent held by institutions, Private company, Private Investment in Public Equity, Public, Public equity, Public ownership, Perfect capital market, Preservation of capital, Point-and-figure chart, Painting the tape, Price range, Price-weighted index, Public book, Put/call ratio, Quiet period, Replacement value, Reports and Records, Residual value, Retention rate, Return of capital, Return on Capital, Return on Invested Capital, Return on Total Assets, Run rate, Real interest rate, Rate covenant, Redeem, Redeemable, Redeemable bond, Redemption date, Redemption price, Refunding, Registered coupon bond, Remaining maturity, Revenue bond, Reading the tape, Real-time trade reporting, Receive against payment, Receive versus payment, Regulation D, Regulation G, Regulation T, Regulation U, Round of funding, Rules of Fair Practice, Rate of exchange, Reciprocal of European terms, Record date, Regulated investment company, Real economic growth rate, Retail Price Index, Regional fund, Reduced paid-up insurance, Redeemable shares, Right, Red herring, Registered Company, Regulation A, Right of first refusal, Right of rescission, Right to Know, Rate-improvement, Rate lock, Renegotiable rate, Revolving line of credit, Right of recourse, Rule of 78, Roll up, Redemption period, Rent, Rent control, Right of redemption, Retirement Equity Act of 1984, Return on Capital Employed, ROC, ROCE, Rally, Rate of return, Real rate of return, Real-time, Ring, Salvage value, Selling, General and Administrative Expenses, SG&A, Savings and Loan, Savings Association Insurance Fund, Short-term reserves, Sight letter of credit, Simple interest, S&L, Stop payment, Savings Bond, Secondary market, Secured bond, Securities and Exchange Commission, Self-supporting bond, Senior refunding, Serial bond, Series bond, Series EE bond, Series HH bond, Short bond, Short-term, Sinking fund, Split coupon bond, Spot rate, Step-up bond, Straight bond, Straight value, Super sinker bond, Surety bond, Securities Investor Protection Corporation, Segregation of securities, Sell the book, Stop-limit order, Stop-loss, Stop order, Stop price, Same-store sales, Savings rate, Standard of living, Swap rate, Settlement price, Short hedge, Spot market, Spot price, Special Drawing Right, Second-to-die insurance, Stock life insurance company, Surrender value, Short interest, Short interest ratio, SIC, Stock market, Severally but not jointly, Subscription price, Statute of Limitations, Sue, Sale and leaseback, Satisfaction of debt, Secondary mortgage market, Security interest, Single-payment loan, Standard payment calculation, Start rate, Staggered board of directors, Sector fund, Series fund, Socially responsible fund, Specialized fund, Specialty fund, Stock fund, Selling the spread, Short leg, Short market value, Short straddle, Step-up warrant, Step-up lease, Savings Incentive Match Plan for Employees, Santa Claus rally, Shareholder value, Share price, Split-adjusted price, Selling short, Selling short against the box, Short, Short cover, Shorting against the box, Short position, Short purchase, Short sale rule, Short squeeze, S Corporation, Short-term gain or loss, Sin tax, Standard mileage rate, Subchapter M, Subchapter S Corporation, Same Day Funds Settlement, Schedule C, Securities Act of 1933, Securities Acts Amendments of 1975, Securities Exchange Act of 1934, Seek a market, Settlement date, Short swing profits, Short swing rules, Specialist market, S&P phenomenon, Stop and reverse, Times interest earned, Top line, Time deposit, Time draft, Tax-exempt bond, T-Bill, Term bond, Term to maturity, Treasury Bond, Take a position, Time order, Two-sided market, Two-way market, Trailing P/E, Tenancy by the entirety, Trust company, Trust fund, Teaser rate, Time note, Truth in Lending, Tax-free bond fund, Tax-managed fund, Theoretical value, Time spread, Tenancy at will, Time-sharing, Title company, Top hat plan, Transfer payments, Ten-bagger, The Street, Time stop, Timing the market, Top-down, Taxpayer Relief Act of 1997, Tax Reform Act of 1986, Tax Reform Act of 1993, Top, Top out, Take a bath, Target price, Thin market, Third market, Tight market, Trade date, Transparent market, U.S. Government Agency Security, U.S. Savings Bond, U.S. Treasury, U.S. Treasury Bill, U.S. Treasury Bond, U.S. Treasury Note, U.S. Treasury Securities, Unlimited tax bond, Unseasoned issue, Unemployment rate, Unearned interest, Uncovered call, Up volume, Unit of trade, Unit of trading, Variable rate, Value stock, Voting right, Vesting period, Value averaging, Value investing, Value Added Tax, Written-down value, With interest, Wage price spiral, World fund, Waiver of premium, Widow-and-orphan stock, W-2 Form, W formation, Weak market, When, as, and if issued, When issued, Wide market, X or XD, Year-To-Date, Yankee bond market, Yield to call, Yield to maturity, Yield to worst, Y shares, Zero-coupon bond