Bonds subject to a redemption provision which permits the corporation to redeem or pay off all,or a part,of the issue before maturity at a specified redemption price are known as ____ bonds.

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Callable bonds have a redemption provision that allows the issuer to redeem or pay off the bond before its maturity. This enables the company to reduce its debt or take advantage of lower interest rates in the future. The redemption price is usually higher than the face value of the bond, giving investors a premium for early redemption. Secured bonds are backed by collateral, income bonds pay interest only if the company has sufficient income, and convertible bonds can be converted into stock at the bondholder's option.

Bonds Subject to a Redemption Provision Which Permits the Corporation