Redemption value
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Redemption value is the price at which the issuing company may choose to repurchase a security before its maturity date.[1] A bond is purchased "at a discount" if its redemption value exceeds its purchase price. It is purchased "at a premium" if its purchase price exceeds its redemption value.[1] Thus, the right will only be exercised at a discount. [2] See: Callable bond; Embedded option; Convertible bond.
References
[edit | edit source]- ^ a b Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Callable or Redeemable Bonds, sec.gov
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