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Glite Dictionary
noncallable bond

noncallable bond

8.2
A bond that the company or government that sold it cannot repay before the end date
  • noun
  • /ˈnɒnˌkɔːləbəl bɒnd/
  • Specialized
translation icon : bono no rescatable
  • The company issued a noncallable bond to assure investors that their funds would be locked in until maturity.

Examples

  • Unlike a callable bond, a noncallable bond guarantees interest payments for the full term.

  • Investors often prefer a noncallable bond because it protects them from early redemption risk.

  • Investors prefer a noncallable bond for its stability.

  • A noncallable bond offers fixed returns over time.

  • Investors often prefer a noncallable bond because it protects them from early redemption risk.

  • The company issued a noncallable bond to assure investors that their funds would be locked in until maturity.

  • Unlike a callable bond, a noncallable bond guarantees interest payments for the full term.

Antonyms

callable
  • Specialized
1 7.9

Able to be bought back by the company that sold it before the end date, usually at a fixed price

How Callable

callable
  • Specialized
1 7.9
noncallable bond
  • Specialized
8.2

Surface Forms

noncallable bond singular
noncallable bonds plural

Morphology

noncallable + bond

The meaning 'a bond that cannot be redeemed before maturity' is directly and transparently built from 'noncallable' (cannot be called back/redeemed) + 'bond' (debt instrument). This follows a regular adjective+noun compositional pattern, so a B1 learner who knows the constituent meanings can readily infer the MWE's meaning.

Etymology

Noncallable bond paints a simple picture: it is a bond the company cannot call back before the end, and 'call' here means 'take back early'. So, investors know their money and interest will stay until the bond ends.