Deferred Call Period

deferred call period

See deferment period.

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Deferred Call Period

In callable bonds, a period during which the bond may not be called. Interest payments are guaranteed during the deferred call period but not afterward. The bond may be prematurely redeemed at any point after the call date. A deferred call period exists to protect bondholders from the risk that interest rates will fall before the call date. The deferred call period is often called the cushion.