The largest market for callable bonds is that of issues from government sponsored entities.

The operative life of a callable bond is the bond's expected life.

The callable bond seems to be vanishing from the American investment landscape.

The Federal Government did sell callable bonds in the past and about two dozen issues are still outstanding.

Most callable bonds allow the issuer to repay the bond at par.

But professionals are also using a less known way to cushion a bond portfolio: by buying premium callable bonds.

"Most of the bonds left in our portfolios are premium callable bonds," he said.

The drawing bonds are redeemable by annual drawings, and similar to a callable bond.

Suppose a fixed-coupon callable bond was brought to the market by a company.

In this case, pricing will be similar to that of a callable bond.