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a deferred call provision: allows the bond issuer to delay paying a bond until after the maturity date should the issuer so opt. prohibits the bond issuer from redeeming callable bonds prior to a specified date. prohibits the issuer from ever redeeming bonds prior to maturity. requires the bond issuer to pay the current market price, minus any accrued interest, should the bond be called. requires the bond issuer pay a call premium that is equal to or greater than one year's coupon should the bond be called.

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A deferred call provision requires the bond company to pay the current market price, minus any accumulated interest, should the bond be called.

A deferred call provision allows the bond issuer to lengthen repaying a bond until after the maturity date have to the issuer so opt.

What does a call provision call feature allow bond issuers to do and why would they do it?

Call provisions are often a function of company and municipal bonds. An issuer can also pick out to call a bond when modern-day interest rates drop under the pastime charge on the bond. That way the company can retailer cash by means of paying off the bond and issuing some other bond at a decrease hobby rate.

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