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   Call Provision
   















 

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Call Provision

A term in a bond indenture that gives the issuer of a bond the right (option) to call the bond for redemption and/or refunding at certain prices and at certain times. This option can be evaluated approximately with techniques similar to those used in evaluating traded options, but the option to call a bond has some unique characteristics that complicate the analysis. Also called Call Feature. See Embedded Option.

Glossary * C