Understanding Callable Bonds

In the context of fixed income securities, understanding the features of bonds is crucial for investors seeking to make informed decisions. Bonds typically have various features that can affect their pricing, yield, and risk profile. One important feature is the bond's call provision. A call provision allows the issuer to redeem the bond before its maturity date. This can be advantageous for issuers if interest rates decline, as they can refinance at lower rates.

Given this background, consider the following question: Which of the following statements correctly describes a feature of a callable bond?