Article · Wikipedia archive · Last revised Jul 13, 2026

Redemption value

Redemption value is the price at which the issuing company may choose to repurchase a security before its maturity date. 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. Thus, the right will only be exercised at a discount. See: Callable bond; Embedded option; Convertible bond.

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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

References

  1. "Redemption Value". Retrieved November 12, 2007.
  2. Callable or Redeemable Bonds, sec.gov