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If a company wants to reserve the right to purchase their issued bonds back from the bondholder, they should issue LIABILITY bonds.


Bonds payable that mature (or come due) within one year of the balance sheet date will be reported as a current liability if the issuer of the bonds must use a current asset or will create a current liability in order to pay the bondholders when the bonds mature.


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I believe the answer is: Callable bonds

Callable bonds refers to a type of bonds that give the issuer with the ability to redeem the bonds before the bonds reach maturity date. This type of bonds tend to offer higher  interest rate for the buyers since the buyers have to bear with the uncertainties of not acquiring full profit from the bonds.

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