The issuers of bonds determine the lifetimes before they sell the bonds to investors. The date on which a bond comes due is called maturity or maturity date . For example, they may say that a particular bond has a ten-year maturity. Maturities range from one month to as long as fifty years. This is Callability.
Corporations often call their bonds when interest rates are falling.
A callable bond specifies the call price in the bond. The call price is the price the issuer will pay if the bond is called. Callability has some advantages for investors. The call price is always greater than the bond's face value because the issuing corporation adds a premium to it. Thus, the investor can profit from the early redemption.