The correct answer is B because the call provision is a valuable option for the issuer. As a result, investors require a higher yield (and thus pay a lower price) for a callable bond compared to an otherwise similar non-callable bond.

• Option A (put provision): Incorrect because a put provision benefits the bondholder, making putable bonds offer a lower yield (and higher price) than non-putable bonds.
• Option C (conversion provision): Incorrect because a convertible bond favors the bondholder, leading to a lower yield and higher price than non-convertible bonds.

This aligns with the learning objective of understanding cash flow contingency provisions in fixed-income instruments.