Call Provision: This allows the issuer to redeem bonds before their maturity date, usually at a premium to the par value, which benefits the issuer in a declining interest rate environment.
Put Provision: Allows bondholders, not issuers, to sell the bond back to the issuer.
Conversion: Relates to convertible bonds that can be converted into equity.
Defeasement: Refers to the removal of a bond issuer’s obligation by setting aside cash or securities to cover the debt.
References:
SEC Guide on Callable Bonds: SEC Callable Bonds.
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