What is the difference between a callable bond and a non-callable bond?

What is the difference between a callable bond and a non-callable bond?

A callable bond is a type of bond that can be redeemed or called back by the issuer before its maturity date. This means that the issuer has the option to repay the bond's principal amount to the bondholder before the bond's scheduled maturity. On the other hand, a non-callable bond is a bond that cannot be redeemed by the issuer before its maturity date. The bondholder has the assurance that the bond will remain outstanding until its scheduled maturity, and the issuer cannot call back the bond early.