Callable bonds allow the issuer to pay off the bonds whenever the issuer chooses.

Name: Callable bonds allow the issuer to pay off the bonds whenever the issuer chooses.
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Callable bonds contain a provision that allows the issuer to redeem or call the bonds before their maturity date, giving them the flexibility to pay off the debt early if interest rates drop or if they want to refinance the debt at a lower rate.

Callable Bonds Allow the Issuer to Pay Off the Bonds