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Make whole provision |
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Make whole provisionRelated to the lump-sum payments made when a loan or bond is called, equal to the NPV of future loan or coupon payments not paid because of the call. The payment can be significant and negate the attractiveness of a call.Make whole provision Similar MatchesPut provisionPut provisionGives the holder of a floating-rate bond the right to redeem the note at par on the coupon payment date. Call provisionCall provisionA provision of a bond or preferred stock issue, listed in its indenture (the formal agreement between the bond issuer and the holder) that allows the issuer to redeem the bond before the maturity date either at par or at a premium to par. Fair price provisionFair price provisionSee:Appraisal rights Call provisionCall provisionAn embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity. Porcupine provisionPorcupine provisionOften used in risk arbitrage. See: Shark repellent. Further SuggestionsProvisional call feature |
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