Tuesday, July 19, 2011

Callable at par? bonds or munis?

What does callable at par mean when we are talking about bonds or munis? Does it mean that the issuer (or the underwriter?) can call the bond back from the client at the callable date or before...and thus, while the holder has the bond, then the issuer pays a higher rate? is this only for serial bonds or also for term bonds such as corp bonds? thanks

No comments:

Post a Comment