Call provisions on corporate bonds are generally included to protect the issuer against large declines in interest rates.They affect the actual maturity of the bond but not its price.

Question

Quizplus · Accepted Answer

Call provisions can affect both the maturity and the price of a bond, as they give the issuer the right to redeem the bond before its maturity, often leading to price adjustments based on interest rate changes and the likelihood of the bond being called.

Call Provisions on Corporate Bonds Are Generally Included to Protect