Final answer:
The default period for conventional redemption is the time frame that allows a borrower to repay the principal on a bond before maturity, commonly ranging from three to five years, influencing the bond's liquidity and yield.
Step-by-step explanation:
The default period for conventional redemption typically refers to the set amount of time within which a borrower can repay the principal on a bond or other fixed-income security before its maturity date without facing a penalty. This period can vary based on the terms of the bond issue, but it often ranges from three to five years after the issuance of the bond. The redemption period is an important aspect for both issuers and investors as it influences the bond's liquidity and yield.