Call feature

This refers to a clause in a bond agreement that allows the bond issuer to buy back the bonds at a set price within a fixed time frame. The call feature provides flexibility to the issuer, enabling them to redeem the bonds before their maturity date, typically to take advantage of favorable interest rate changes. For example, if interest rates decrease, the issuer can refinance the debt at a lower cost by calling the bonds and issuing new ones at a lower interest rate.