The price, as established in the bond contract, at which securities will be redeemed, if called. The call price is generally at or above par (or the compound accreted value in the case of zero coupon and some deeply-discounted original issue discount securities) and is stated as a percentage of the principal amount called. See: PREMIUM CALL PRICE; REDEMPTION PREMIUM; REDEMPTION PROVISIONS.
The price a bond-issuer will have to pay when redeeming a bond prior to its stated maturity date. Generally, the bond-holder receives a small premium over the bond's face value for early repayment. Early payback usually happens when interest rates fall and the lender wants to reduce interest payments by replacing existing bonds with lower coupon-rate bonds.
The set price at which a bond may be redeemed by the issuer. The time period is established at issuance and the price is generally greater than par value to compensate the holder for the risk of early redemption.
The price at which an issuer may redeem a bond prior to its maturity, or a preferred stock that has a call provision--also known as "redemption price." The issuer reimburses holders for their loss of income and ownership by paying a call premium--the call price is usually higher than the security's par value, the difference being the call premium. See: Bond; Call Features Of A Bond; Call Premium; Call Protection; Maturity Date; Par; Preferred Stock; Redemption
The amount at which the holder of preferred stock or bonds must sell the stock or bond back to the issuing corporation. The call price is disclosed in the indenture. The call price might be the face or par amount plus one year's interest or dividend. To Top