A callable bond may be retired by the issuer prior to maturity.

Name: A callable bond may be retired by the issuer prior to maturity.
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Callable bonds typically include a provision that allows the issuer to retire them before the stated maturity date. This provision gives the issuer the flexibility to lower their borrowing costs if market conditions change. However, if the bond is called before maturity, the bondholders may not receive their full interest payments and principal until the call date.

A Callable Bond May Be Retired by the Issuer Prior