Redemption Value

Knowledge Center

What is Redemption Value? Meaning.

The Redemption Value is the par or premium price of a debt security or preferred stock issue for which it can be repaid at or before its Maturity Date. It is the price at which a bond or Preferred Stock can be called by the issuing company. The debt instrument is then repurchased. The call price before its maturity date typically exceeds the Face Value of the bond by a Call Premium, recognizing that the holder will lose income and ownership from the forced buyback.

A bond is said to be purchased at a premium if its purchase price exceeds its redemption value.
If the purchase price of a bond is less than its redemption value, it is said to be purchased at a discount.

Forum New Topic Forum about Redemption Value. 🔥 NEW Redemption in Mutual Funds What is redemption in mutual funds? (...) -2   Start a new forum topic about Redemption Value. More info. Share your opinion, knowledge and experience or ask a question (sign up for free first)

Information Sources Sign up Various sources of information regarding Redemption Value. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Research Links Sign up Automatically jump to further useful sources regarding Redemption Value. News Videos Presentations Books More

Compare with: Face Value  |  Maturity Date  |  Yield to Maturity  |  Net Present Value  |  Bond Insurance

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing

More on Management  |  Return to Management Dictionary

This ends our Redemption Value summary and forum.