noncallable bond (Meaning)
Wordnet
noncallable bond (n)
a bond containing a provision that the holder cannot redeem the security before a specific date (usually at maturity)
Synonyms & Antonyms of noncallable bond
No Synonyms and anytonyms found
noncallable bond Sentence Examples
- A noncallable bond is a debt instrument that cannot be redeemed before its maturity date by the issuer.
- Noncallable bonds offer investors a higher degree of security and stability compared to callable bonds.
- The noncallable feature restricts the issuer's ability to refinance the debt at lower interest rates.
- Noncallable bonds are typically issued with longer maturities to compensate for the lack of call protection.
- Investors who prioritize predictability and income stability often favor noncallable bonds.
- The absence of a call option makes noncallable bonds less attractive to issuers, leading to higher interest rates.
- Noncallable bonds are less liquid than callable bonds, as they cannot be easily refinanced or sold back to the issuer.
- The yield on noncallable bonds is typically higher than that of callable bonds with similar maturities.
- Noncallable bonds can be used as portfolio hedges against interest rate risk, providing downside protection.
- The noncallable bond market offers a range of options for investors seeking stable income and reduced volatility.
FAQs About the word noncallable bond
a bond containing a provision that the holder cannot redeem the security before a specific date (usually at maturity)
No synonyms found.
No antonyms found.
A noncallable bond is a debt instrument that cannot be redeemed before its maturity date by the issuer.
Noncallable bonds offer investors a higher degree of security and stability compared to callable bonds.
The noncallable feature restricts the issuer's ability to refinance the debt at lower interest rates.
Noncallable bonds are typically issued with longer maturities to compensate for the lack of call protection.
