Let's delve into the concept of a callable security. This financial instrument contains a provision that grants the issuer the ability to redeem and pay off the security at a predetermined price and within a specific time frame. In simpler terms, the issuer holds the power to recall the security and terminate it. This feature offers the issuer flexibility and can be a significant factor for investors to consider. It is important to understand the implications of a callable security before making any investment decisions.
