Redemption value

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.

[2] See: Callable bond; Embedded option; Convertible bond.

This economics-related article is a stub.