Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
You might buy a bond that promises to pay 9% for 30 years, but the fine print makes the bond callable in 3 years at 102 cents on the dollar. This means the company could pay you off sooner and for less than you'd thought. This protects the company issuing the bonds in case interest rates drop a lot.