call feature

Call feature

Part of the indenture agreement between the bond issuer and buyer describing the schedule and price of redemptions prior to maturity.

Call Feature

A provision in an indenture that makes a bond callable. A callable bond allows the issuer to redeem the bond before maturity. When the bond is called, the bondholder receives the par value (or sometimes more) and does not receive any more coupons. Callable bonds are issued to allow the issuers to hedge against interest rate risk. That is, if interest rates fall significantly, the issuers can call the bond and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also include call protection, which prevents the bonds from being called for a certain period of time, and thereby guarantees the current interest rate for that time.

call feature

References in periodicals archive ?
It appears as though an Instagram team is currently developing a new video call feature for the app.
The Wireless Emergency Call feature provides residents with the security and reliability of a conventional full-featured emergency call system by means of a Wireless Pendant.
According to the theory, when favorable information is released about the firm in period t + 1, the call feature allows the firm to recontract at a lower yield.
Users can utilize WhatsApp video and voice call features for as low as Rs.
WORLDWIDE COMPUTER PRODUCTS NEWS-November 30, 2015-Turkcell adds voice and video call features on its BiP app