Callable bonds give the issuer the option to retire them at a stated dollar amount before maturity.

Name: Callable bonds give the issuer the option to retire them at a stated dollar amount before maturity.
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Callable bonds give the issuer the option to retire them at a stated dollar amount before maturity, which is typically at a premium to the bond's par value. This allows the issuer to take advantage of lower interest rates and refinance the debt at a cheaper cost.

Callable Bonds Give the Issuer the Option to Retire Them