A call feature or call provision is part of the agreement a bond issuer makes with a buyer, detailing the schedule and price of redemptions before maturity. Most corporate and municipal bonds have ten-year call features, while government securities usually do not.
Understanding the nonrefundable provision in bond indentures and how it impacts bondholders and issuers.
An Open-End Investment Company (commonly known as a mutual fund) is an investment vehicle that continually issues new shares and allows investors to redeem shares at any time.
Redemption refers to the repayment of shares, stocks, debentures, or bonds as specified at the time of issue, often including a fixed redemption date and amount.
