Callable bonds
A callable bond gives the issuer the right to redeem early — usually exercised when rates fall, which is exactly when you'd want to keep holding.
Always look at the yield-to-call (YTC) alongside YTM to understand your realistic worst-case return.
Puttable bonds
A puttable bond gives you the right to sell back to the issuer at par on specified dates — useful when you want a floor on duration risk.
Compare YTM, YTC, and YTP together — never look at the headline rate in isolation when options are in the picture.
