Multi-Callable Bond

See: Callable Bond.

A multi-callable bond gives the issuer multiple opportunities to call a bond. The bond stipulations include a bunch of pre-set dates when the issuer can choose to buy the bonds back.

These bonds can work in two general ways.

The first method has the payouts coming form the bond (known as the coupons), and rising each time a callable date passes without the issuer deciding to buy back the bond. These are known as step-up bonds.

The other method has a flat payout. The coupon remains the same over time, even as the callable dates pass without any action. These are known as accrual bonds.