Which feature of a bond contract allows the issuer to redeem a bond issue immediately in its entirety at an amount greater than par value prior to maturity? Deferred call provision Call provision Put provision Convertible provision Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue?

A call provision is a feature of a bond contract that allows the issuer to redeem a bond issue immediately in its entirety at an amount grater that par value prior to maturity. They are often a feature of corporate and municipal bonds. An issuer may choose to call a bond when current interest rates drop below the interest rate on the bond. That way the issuer can save money by paying off the bond and issuing another bond at a lower interest rate. The call provision generally states that the company must pay the bondholders an amount greater than the par value if they are called

2. Deferred call provision

Put provision

Convertible provision

Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue?

Deferred call provision is a call provision inwhich the issuer is preevented form calling a portion or the entire issue for several years during the early years of the bond issue. Its feature a that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.