callable

Examples of callable in the following topics:

• Redeeming Before Maturity

  • To be detailed, the bond issuer will repurchase bonds with callability.
  • These bonds are referred to as callable bonds.
  • Most callable bonds allow the issuer to repay the bond at par.

• Classifying Liabilities

  • Other long-term obligations, such as bonds, can be classified as current because they are callable by the creditor.
  • When a debt becomes callable in the upcoming year (or operating cycle, if longer), the debt is required to be classified as current, even if it is not expected to be called.
  • In situations where a debt is not yet callable, but will be callable within the year if a violation is not corrected within a specified grace period, that debt should be considered current.

• Characteristics of Bonds

  • Callability — Some bonds give the issuer the right to repay the bond before the maturity date on the call dates.
  • Most callable bonds allow the issuer to repay the bond at par.

• Types of Bonds

• Basic Components of Asset Valuation

  • ., warrants, put/call options, employee stock options, investments with embedded options such as a callable bond) and are a complex present value model.