A call provision gives bondholders the right to demand,or "call for," repayment of a bond.Typically,companies call bonds if interest rates rise and do not call them if interest rates decline.

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A call provision gives the issuer of the bond the right to repay the bond before its maturity date, typically when interest rates decline, allowing them to refinance at a lower rate. Bondholders do not have this right.

A Call Provision Gives Bondholders the Right to Demand,or "Call