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 ?
The cell phone user must progam the phone to disable that automatic call feature.
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.
Called R/Evolutionary Networking, the portfolio is led by a technological breakthrough known as the 7R/E Call Feature Server, which is planned to ship in the fourth quarter of this year.
13 /PRNewswire/ -- GTE Airfone said today it has already issued more than 40,000 aircall cards for its new ground-to- air call feature.
The Sylantro Synergy platform enables SunRocket to continue seamless delivery of a robust call feature set as we scale our residential Internet phone service subscriber base," said Mark Fedor, Chief Technology Officer at SunRocket.
The warrants have a call feature which IsoRay can trigger once the stock trades above $4.
There is no telephone conference call feature for this meeting.
LightEdge cited BroadSoft's position as the industry leader in VoIP application software as well as a comprehensive call feature set as reasons for selecting the BroadWorks application platform.
Costless collars incorporate both a put and a call feature to ensure the price received falls between a minimum and a maximum price.
The notes are expected to be a permanent part of the capital structure, notwithstanding a call feature after five years.
WORLDWIDE COMPUTER PRODUCTS NEWS-November 30, 2015-Turkcell adds voice and video call features on its BiP app