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  2. What Are Callable Bonds? How They Work and How To Invest - AOL

    www.aol.com/finance/callable-bonds-161308719.html

    Fully Callable Bonds. Can be called at any time after the call date if applicable. Common among corporate bonds. Partially Callable Bonds. Only a portion of the bond can be called, not the full amount

  3. Callable bond - Wikipedia

    en.wikipedia.org/wiki/Callable_bond

    If rates go down, many home owners will refinance at a lower rate. As a consequence, the agencies lose assets. By issuing numerous callable bonds, they have a natural hedge, as they can then call their own issues and refinance at a lower rate. The price behaviour of a callable bond is the opposite of that of puttable bond.

  4. Bond option - Wikipedia

    en.wikipedia.org/wiki/Bond_option

    Callable bond: allows the issuer to buy back the bond at a predetermined price at a certain time in future. The holder of such a bond has, in effect, sold a call option to the issuer. Callable bonds cannot be called for the first few years of their life. This period is known as the lock out period.

  5. Bond (finance) - Wikipedia

    en.wikipedia.org/wiki/Bond_(finance)

    In finance, a bond is a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date and interest (called the coupon) over a specified amount of time. [1])

  6. Read This Before Investing in Callable Certificate of Deposits

    www.aol.com/read-investing-callable-certificate...

    Cons of a Callable CD The top cons of investing in a callable certificate of deposit are: Can limit long-term earnings: Though callable CDs have a guaranteed rate, the bank can close them early ...

  7. Option style - Wikipedia

    en.wikipedia.org/wiki/Option_style

    The key difference between American and European options relates to when the options can be exercised: A European option may be exercised only at the expiration date of the option, i.e. at a single pre-defined point in time. An American option on the other hand may be exercised at any time before the expiration date.

  8. Call option - Wikipedia

    en.wikipedia.org/wiki/Call_option

    the expected intrinsic value of the option, defined as the expected value of the difference between the strike price and the market value, i.e., max[S−X, 0]. [3] the risk premium to compensate for the unpredictability of the value; the time value of money reflecting the delay to the payout time

  9. Duration (finance) - Wikipedia

    en.wikipedia.org/wiki/Duration_(finance)

    Modified duration can be extended to instruments with non-fixed cash flows, while Macaulay duration applies only to fixed cash flow instruments. Modified duration is defined as the logarithmic derivative of price with respect to yield, and such a definition will apply to instruments that depend on yields, whether or not the cash flows are fixed.