What is a Non-Call Provision?

Definition:

A clause in an Indenture stipulating that the issuer does not have the right to call, or buy back, an issuance prior to Maturity. It is the absence of a call provision that makes a bond non-callable at all or for a period. Because call provisions are less favorable to investors, bonds with call provisions tend to be worth less than similar Non-Callable Bonds.

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