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Call provisions

Call provisions are the terms under which bonds, preferred stocks, and related fixed income securities may be called. A call gives the issuer to right to refund the issue at a specified price on or after a specified date.

Expanded Definition

Call provisions are somewhat like refinancing a mortgage. They allow the borrower to call in outstanding debt and refinance often at a lower rate.

Some securities have complex call provisions with a schudule of payments required if the issue is called between a series of specified dates. The details are listed in the prospectus for the issue. QuantumOnline [1] does an excellent job of summarizing call provisions. They also provide links to the original prospectus for the issue. (But the bond ratings shown on QuantumOnline are "when issued" and may not be current.)

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