What provision allows the issuer to redeem the bond before its maturity at a specified price?

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The provision that allows the issuer to redeem the bond before its maturity at a specified price is called the call provision. This provision gives the issuer the option to call back the bond from the investors before its maturity at a pre-determined price. This is usually done when interest rates decline, and the issuer can issue new bonds at a lower interest rate, saving money on interest payments.

What Provision Allows the Issuer to Redeem the Bond Before