A call date has to deal with the redemption of a callable bond. Essentially, the earliest possible date at which the issuer of the bond may redeem the bond is referred to as the call date. The call date is different from the maturity date on callable bonds, in that way that call date takes place at some point before the stated date of maturity that is specified in the terms and conditions surrounding the bond issue.
Characteristics of the call date
One of the characteristics of the call date is that before the bond issuer is likely to exercise an early redemption certain conditions must be present. First condition is that, call dates may be extended to bond holders only when the interest rates fall. When this has happened then to gather in the bonds, honoring them at the old rate of interest, then immediately issuing new bonds at the new and lower rate of interest becomes in the best interests of the bond issuer.
