Noncallable Bond (Noun)
Meaning
A bond containing a provision that the holder cannot redeem the security before a specific date (usually at maturity).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The corporation issued a noncallable bond with a 10-year maturity date to finance its expansion project.
- The investor purchased a noncallable bond with a 7-year term to generate a steady income stream.
- The bond indenture specified that the noncallable bond would not be redeemable until the maturity date, which was 15 years from the issue date.
- The company's noncallable bond ratings were upgraded by the credit agency due to its improved financial performance.
- The investor was willing to accept a lower yield on the noncallable bond in exchange for the security of a longer-term investment.