A callable bond is a type of bond where borrowers can pay off their debts at any time, even before the maturity date. In general, Callable bonds provide a higher interest rate (coupon) than Non-Callable bonds. In general, investors are reluctant to buy callable bonds, because there is uncertainty about when issuers can buy back their bonds and this is often done when interest rates fall. So as an investor, of course you will lose, because the profit calculation plan will not match the reality.
Callable Bond Overview
- Thread starter Suba
- Start date
Now it comes to my mind that almost all online investments are very risky. The only difference to the online investments is that the level of risks from one investment to the other differs depending on various parameters
- Thread starter
- #3
Bonds existed before the internet, initially the owner of the bond would hold valuable paper such as a certificate in the form of acknowledgment of debt and stated maturity date, bonds could be issued by the government or private companies.
