Ans: No, callable and puttable bonds are not the same. In fact, they are completely opposite from one another. Here’s how: • Callable bonds give issuers the chance to redeem the bond before maturity. Puttable bonds give investors the option to demand redemption of their bonds before maturity. • Callable bonds carry a higher interest rate than puttable bonds. • Callable bonds are redeemed at a premium while puttable bonds are redeemed at a discount. • Callable bonds are favourable for issuers in the case of falling interest rates. Puttable bonds are favourable to investors in the case of rising interest rates.  • The put option can be exercised on any date. In the case of the call option, there is a call protection period after which the call option can be exercised.