Bond Call
/ˈbɒnd kɔːl/
Definitions
- (n.) A provision in a bond agreement that allows the issuer to repay the bond before its maturity date.
The bond call enabled the company to refinance its debt at a lower interest rate.
- (v.) The act of redeeming or repurchasing bonds prior to their maturity under the terms specified in the bond indenture.
The corporation decided to bond call the outstanding notes due to favorable market conditions.
Forms
- bond calls
- bond called
- bond calling
Related terms
See also
Commentary
Ensure clarity in contracts whether the call is discretionary or mandatory, and specify call price and notice requirements clearly.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.