Series 7: 2.9.4.3. Call Provisions

2.9.4.3. Call Provisions

Convertible bonds have yet another complication. They are callable by the issuer. In this case, a call requires the bondholder to either sell the bond back to the issuer or submit to a forced conversion of the bond into shares. When this happens, investors have 30 days’ notice to redeem their bonds at the redemption price, which might be at par or at a call price representing some premium to par