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Sagot :
An important advantage to the issuer of a bond with a call provision is that they allow for refinancing opportunities.
What is a call provision?
A call provision refers to a clause in a bond purchase contract which gives the bond's issuer the right to redeem the bond early, before its maturity date. Callable bonds generally pay a higher coupon rate than non-callable bonds.
A call provision provides bondholders the right to demand, or call for, the repayment of a bond. Generally, calls are exercised if interest rates rise, because when rates rise the bondholder can get the principal amount back and reinvest it elsewhere at higher rates.
Learn more about call provision at: https://brainly.com/question/29427004
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