A "make-whole" call provision on a bond provides for

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A make-whole call provision on a bond provides for a call price equal to the bond's approximate market value at the time of call, which may include the present value of future interest payments. This provision is designed to compensate investors for the loss of future interest income they were expecting to receive before the bond was called. The call price is typically calculated using a formula specified in the bond indenture, which takes into account current interest rates, the remaining term to maturity, and other relevant factors. This type of call provision is sometimes referred to as a "yield maintenance" provision because it is intended to maintain the yield investors would have earned if the bond had not been called.

A "Make-Whole" Call Provision on a Bond Provides for