Callable bonds are the bonds that can be redeemed at par at the option of their holders either at specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt are called.

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Callable bonds can be redeemed by the issuer, not the holders, before maturity, typically at a premium, under certain conditions. The description given is more akin to putable bonds, which allow holders to sell back to the issuer.

Callable Bonds Are the Bonds That Can Be Redeemed at Par