In the world of bonds, we are often faced with the terms callable bond and non-callable bond. After reading the discussion below, which do you think is better?
Callable Bond
A callable bond is a type of bond that can be redeemed by the issuer at any time, especially before the maturity date. Callable bonds often offer higher but fluctuating interest rates. Unlike Putable bonds, the redemption of which is determined by the investor.
Non Callable Bond
A non-callable bond refers to a type of bond that will only be paid by the issuer when it reaches the maturity date with a fixed interest rate according to the initial agreement. Non-callable bonds also have a lower risk compared to callable bonds.
Callable Bond
A callable bond is a type of bond that can be redeemed by the issuer at any time, especially before the maturity date. Callable bonds often offer higher but fluctuating interest rates. Unlike Putable bonds, the redemption of which is determined by the investor.
Non Callable Bond
A non-callable bond refers to a type of bond that will only be paid by the issuer when it reaches the maturity date with a fixed interest rate according to the initial agreement. Non-callable bonds also have a lower risk compared to callable bonds.
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