SIE: Call Provisions

Call Provisions

Convertible bonds have yet another complication. They are callable by the issuer. Usually, a company will call a bond within the callable period soon after the conversion value exceeds the call price. When this happens, investors will have 30 days’ notice to redeem their bonds at the redemption price, which might be at par or at a call price that is higher than par (e.g., 103 bond points).