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Period of Call Protection
(redirected from Non-Call Period)

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Period of Call Protection
In callable bonds, a period of time during which a bond may not be prematurely redeemed. Interest payments are guaranteed during the call protection period but not afterward. The bond may be redeemed at any point after the call date, which means that the issuer could return the principal to bondholders and interest payments would cease. The period of call protection exists to protect bondholders from the risk that interest rates will fall before the call date. The period of time is often called the cushion.

period of call protection


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Substantially all of our borrowings are callable quarterly at the discretion of the lender after an initial non-call period of one to five years with a final maturity of ten years.
SpareBank One SR-Bank has announced that it will issue new bonds on the Norwegian bond market, envisaging callable bonds in two tranches: one with a variable coupon rate and one with a fixed coupon rate in the non-call period.
In addition, the non-call period is scheduled to terminate on the May 2008 payment date.
 
 
 
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