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
This article is copied from an
article on Wikipedia® - the free encyclopedia created and edited by its online user community. The text was not checked or edited by anyone on our staff. Although the vast majority of Wikipedia® encyclopedia articles provide accurate and timely information, please do not assume the accuracy of any particular article. This article is distributed under the terms of
GNU Free Documentation License.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.