Sacramento, California Investment-Grade Bond with Optional Redemption (with a Par Call): A Sacramento, California investment-grade bond with optional redemption (with a par call) refers to a type of bond issued by the city of Sacramento in the state of California, which possesses an investment-grade rating given by credit rating agencies. This bond offers investors the option to redeem the bond before its maturity date, usually at par value, in addition to receiving regular interest payments. The optional redemption feature with a par call provides flexibility to bondholders, allowing them to take advantage of favorable market conditions or other financial considerations. By exercising the par call option, bondholders can redeem the bond at the pre-determined par value, which is typically the face value of the bond. This means that bondholders can receive their principal investment back along with any outstanding interest payments. Sacramento may issue different types of investment-grade bonds with optional redemption (with a par call), depending on various factors such as duration or purpose of the bond. Some common types of investment-grade bonds include: 1. General Obligation Bonds: These bonds are backed by the full faith and credit of the issuer, meaning that the city's general revenues are used to pay back bondholders. General Obligation Bonds are often issued to fund long-term projects like infrastructure development or public facilities. 2. Revenue Bonds: These bonds are secured by a dedicated revenue stream, such as income generated from toll roads, utilities, or other specific projects. Revenue bonds are typically used for financing projects that generate reliable and steady income streams. 3. Municipal Bonds: These bonds are issued by local governments, such as cities or counties, to finance various public projects and services. Municipal bonds are exempt from federal income tax, making them attractive to investors seeking tax advantages. Investors interested in Sacramento, California investment-grade bonds with optional redemption (with a par call) should consider consulting with a financial advisor or bond specialist. They can provide guidance on evaluating the creditworthiness of the bond issuer, assessing the potential risks and rewards associated with the investment, and understanding the specific terms of redemption and call provisions.