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A call provision gives bondholders the right to demand, or call for, the repayment of a bond. Typically, calls are exercised if interest rates rise,
A call provision gives bondholders the right to demand, or "call for," the repayment of a bond. Typically, 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.?
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