A 'call provision' is an option to the issuer to repurchase the bonds at a predetermined price.

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A call provision, also known as a call feature, allows the issuer of a bond to repurchase the bond at a predetermined price, usually at a premium to the face value, before the maturity date. This option is beneficial to the issuer if interest rates have declined since the bond was issued because they can refinance at a lower rate.

A 'Call Provision' Is an Option to the Issuer to Repurchase