A bond that the issuer has the right to redeem prior to maturity. Some callable bonds may be redeemed on a single call date while others have multiple call dates. Some callable bonds may be redeemed at par while others can only be redeemed at a premium. American Banker Glossary
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callable bond UK US noun [C] FINANCE, STOCK MARKET
► a bond that can be bought back before the time when it would normally mature (= become ready to be paid) by the company or government that sold it: »
The early repayment of callable bonds results in shortened portfolio durations.
Financial and business terms. 2012.