A call provision, which allows the corporation to force an early maturity on a bond issue, usually contains all but which of the following characteristics?

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A call provision typically involves the corporation calling the bond issue before its scheduled maturity date by paying a premium over the par value of the bond. The call premium tends to decline over time because the risk of the bond being called decreases as the bond approaches maturity. Most call provisions have a minimum period before the bonds can be called, often five years or more, to provide stability for bondholders. However, the provision typically does not involve debt conversion into common stock.

A Call Provision, Which Allows the Corporation to Force an Early