A bond's refers to the interest payment or payments paid by a bond. Career Success Tips A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants, Help Give Feedback A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a A bond's gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions