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

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

    Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. ... The option varies depending on the bond’s call frequency — some bonds have a continuous ...

  3. Callable bond - Wikipedia

    en.wikipedia.org/wiki/Callable_bond

    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. Since call option and put option are not mutually exclusive, a bond may have both options embedded. [3]

  4. Are some bonds safer than others? - AOL

    www.aol.com/finance/bonds-safer-others-120000404...

    Types of bonds more likely to be affected by reinvestment risk: Callable bonds, short-term bonds, zero-coupon bonds, mortgage-backed securities and asset-backed securities. 4. Liquidity risk

  5. Yield to maturity - Wikipedia

    en.wikipedia.org/wiki/Yield_to_maturity

    Yield to put (YTP): same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date. Yield to worst (YTW): when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.

  6. Corporate bond - Wikipedia

    en.wikipedia.org/wiki/Corporate_bond

    Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. These are called callable bonds. [10] A less common feature is an embedded put option that allows investors to put the bond back to the issuer before its maturity date. These are called putable bonds.

  7. Bond option - Wikipedia

    en.wikipedia.org/wiki/Bond_option

    Bonds of this type include: 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.

  8. 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 ...

  9. Duration (finance) - Wikipedia

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

    Consider a bond with a $1000 face value, 5% coupon rate and 6.5% annual yield, with maturity in 5 years. [26] The steps to compute duration are the following: 1. Estimate the bond value The coupons will be $50 in years 1, 2, 3 and 4. Then, on year 5, the bond will pay coupon and principal, for a total of $1050.