Calling off the bonds means the Issuer Company retires or pay off the bonds before the maturity period of the bonds. When the company calls off the bonds, the nominal amount of bonds (or higher price due to premium for early retirement) along with accrued interest is paid by the company to its investors to satisfy its liability. And after calling off the bonds, no liability exists in the books. The Meaning of calling off the bonds and conditions in which the company takes such decisions need to be determined.

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Chapter 14, Problem 15RQ

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Calling off the bonds means the Issuer Company retires or pay off the bonds before the maturity period of the bonds. When the company calls off the bonds, the nominal amount of bonds (or higher price due to premium for early retirement) along with accrued interest is paid by the company to its investors to satisfy its liability. And after calling off the bonds, no liability exists in the books.

The Meaning of calling off the bonds and conditions in which the company takes such decisions need to be determined.

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