A feature on a bond that allows the issuer to buy back the bond from the investor before maturity is called

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A callable bond is a type of bond that allows the issuer to redeem or buy back the bond from the investor before its maturity date. This option is typically available to the issuer after a specific date and at a predetermined price, which is outlined in the bond's prospectus. The callable feature provides flexibility to the issuer but also poses a risk to the investor, as they may miss out on potential future interest payments if the bond is called early.

A Feature on a Bond That Allows the Issuer to Buy