A feature which is attached to a callable bond giving the issuer the right to purchase back the bond at the call price which is given in the call schedules for each call date in the futures. A call provision is equivalent to a call option sold by a bondholder to an issuer and therefore the bond value with a call provision is less than that of an otherwise similar non-callable bond.
Convertible bonds usually come with call protection for a specified period of time (such as first five years of a bond’s life) and become callable thereafter.
