Many callable bonds possess a call deferment period which is a specified period of time after the issue during which the bonds cannot be called.

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Callable bonds often have a call deferment period, which is a specified period of time after the issue during which the bonds cannot be called. This provides some security to investors, as it gives them a guaranteed period of time during which they can count on receiving a certain level of income from their investment. After the call deferment period has passed, however, the issuer has the option to call the bonds at any time.

Many Callable Bonds Possess a Call Deferment Period Which Is