A callable bond is a bond that the issuer can repurchase during certain time periods before its maturity date. To be callable, a bond must have a call feature, which enables the issuer to repurchase the bond before its maturity date. An issuer who chooses to call a bond generally pays the bond’s holder a call premium upon repurchase, which is meant to compensate the holder for the disadvantage of having to find another way to invest his or her money.

Cafeteria plans allow employers to compensate employees by offering a combination of cash and tax-favored “fringe” benefits (health/disability INSURANCE, dependent care, or group term life insurance).