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Secured bonds are those that are collateralized by an asset – for instance, property, equipment (as is commonly the case for bonds issued by airlines, railroads and transportation companies), or by another income stream. Callable or redeemable bonds are bonds that can be redeemed or paid off by the issuer prior to the bonds' maturity date when an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.
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