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Due to the impact that sudden events could have in the value of bonds, event risk covenants, or provisions, are included in the issuance of

Due to the impact that sudden events could have in the value of bonds, event risk covenants, or provisions, are included in the issuance of some corporate bonds. This covenant allows the issuer to pay off the remaining debt early. The issuer can call its outstanding bonds at a call price equal to the market price of a similar noncallable bond. Such a covenant is called a .

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