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?.

Respuesta :

A call provision is 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.

What is call provision?

Call provision is charged with a bond and it allows an individual buy bond immediately.

It comes in form of fixed-income instrument that allows the issuer of the bond to repurchase.

Therefore, A call provision is 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

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