BROWSE

Call Date

Definition

A callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. In other words, on the call date, the issuer has the right, but not the obligation, to buy back the bonds from the bond holders at a defined call price. Technically speaking, the bonds are not really bought and held by the issuer but are instead cancelled immediately.

What is 'Call Date'

The date on which a bond can be redeemed before maturity. If the issuer feels there is a benefit to refinancing the issue, the bond may be redeemed on the call date at par or at a small premium to par.

Explaining 'Call Date'

The call date is important to be aware of when buying a bond. You are only guaranteed interest payments up to this date.


Further Reading


Convertible bonds: Valuation and optimal strategies for call and conversion
www.jstor.org [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

Convertible calls and security returnsConvertible calls and security returns
www.sciencedirect.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

An examination of corporate call policies on convertible securitiesAn examination of corporate call policies on convertible securities
www.jstor.org [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

Why firms issue convertible bonds: the matching of financial and real investment optionsWhy firms issue convertible bonds: the matching of financial and real investment options
www.sciencedirect.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

Anticipated information releases reflected in call option pricesAnticipated information releases reflected in call option prices
www.sciencedirect.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

Conference calls and information asymmetryConference calls and information asymmetry
www.sciencedirect.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

Liquidity and financial market runsLiquidity and financial market runs
academic.oup.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …

The optimal call policy for convertible bonds: Is there a market memory effect?The optimal call policy for convertible bonds: Is there a market memory effect?
www.tandfonline.com [PDF]
… conversion value, its rate of return up to the next dividend or conversion change date can never … By Definition 2, the optimal call strategy is chosen to minimize the value of the convertible bonds. This is accomplished by calling the bonds as soon as their value if not called equals …


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