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A call provision gives bondholders the right to demand, or call for, repayment of a bond. Typically, companies call bonds if interest rates rise and
A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, companies call bonds if interest rates rise and do not call them if interest rates decline.
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The expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss.
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