Redemption value (original) (raw)

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.