Call date,
Definition of Call date:
Date on which a callable bond may be redeemed by its issuer before its stated maturity date.
The call date is a day on which the issuer has the right to redeem a callable bond at par, or at a small premium to par, prior to the stated maturity date. The call date and related terms will be stated in a security's prospectus,.
The trust indenture also lists the call date(s) a bond can be called early after the call protection period ends. There could be one or multiple call dates over the life of the bond. The call date that immediately follows the end of the call protection is called the first call date. The series of call dates is known as a call schedule and for each of the call dates, a particular redemption value is specified. Logic dictates that the call date provision will only be exercised if the issuer.feels that there is a benefit to refinancing the issue. Investors who depend on the interest income generated from bonds must be aware of the call date when buying a bond.
How to use Call date in a sentence?
- An issuer can only exercise its callable option for early redemption on specified call dates.
- The call date, stated in a security's prospectus, gives the issuer of a callable security to be redeemed at or around par.
- There could be one or multiple call dates over the life of the bond and for each of the call dates, a particular redemption value is specified.
Meaning of Call date & Call date Definition
