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
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- ↑ a b Script error: No such module "citation/CS1".
- ↑ Callable or Redeemable Bonds, sec.gov