Some investors may decide never to buy a callable bond; however, this isn't always practical. When deciding whether to invest in callable bonds, you will want to check for a call premium, the call date, yield-to-call, and other key factors before making up your mind. You may want to create several scenarios that compare your earnings for different call dates.
When you have completed your analysis, you will not be caught off guard if your bond is called. You will be prepared and know what steps to take to keep your investment plan on track.