When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...

Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...

Prepayment risk refers to the chance that a borrower may repay the principal of a fixed-income security early, reducing returns for investors. Learn how it affects investments.

If you are like most investors you grind your teeth every time a bond in your portfolio gets called. Normal response. Regular callable bonds have predetermined call dates accompanied with the premium ...