what is a callable bond 
a callable bond also known as a redeemable bond is a bond that the issuer may redeem before it reaches the stated maturity date a callable bond allows the issuing company to pay off their debt early a business may choose to call their bond if market interest rates move lower which will allow them to re borrow at a more beneficial rate callable bonds thus compensate investors for that potentiality as they typically offer a more attractive interest rate or coupon rate due to their callable nature 1investopedia sabrina jiang