Callability -- Some bonds give the issuer the right to repay the bond before the maturity date on the call dates ; see call option . These bonds are referred to as callable bonds . Most callable bonds allow the issuer to repay the bond at par . With some bonds , the issuer has to pay a premium , the so - called call premium . This is mainly the case for high - yield bonds . These have very strict covenants , restricting the issuer in its operations . To be free from these covenants , the issuer can repay the bonds early , but only at a high cost .

Question: a bond that the issuer has the right to pay off before its maturity date
Answer: callable