Definition Redemption Value. Description.
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.
Redemption Value Special Interest Group
Compare with: Face Value
| Maturity Date |
Yield to Maturity |
Net Present Value |