When a bond is issued, the issuer may have the option to call (redeem) the bond on specified dates and prices prior to maturity. The list of dates on which a specified bond can be called is shown in a call schedule.
The date on which a bond may be redeemed before maturity. For example, a bond may be scheduled to mature in 20 years but may have a provision that it can be called in 10 years if the issuer wants to refinance the bond.
Refers to the date on which a bond may be redeemed before maturity. The investor purchasing a bond should be aware that he or she cannot count on interest on a bond beyond the call date because the issuer may redeem the bond on the call date if it is advantageous for them to do so.
The Call Date is the earliest date that a bond issuer can redeem a bond prior to its stated maturity date. Bonds are often called when interest rates have fallen and the lender wants to issue new, lower-rate bonds to replace the higher-rate bonds outstanding. Generally, the bondholder receives a small premium over the bond's face value for early repayment.