bond call price
Financial Dictionary — Fixed Income
Definition
The call price of a bond is the price at which the bondholder must sell the bond to the issuer. For example, a company may have the right to redeem/repurchase its bonds by paying the bondholder 110% of the face amount of the bond
Detailed Explanation
Bond call price is the price at which the issuer can redeem (call) the bond before maturity, if the bond terms allow. It is often above face value (a call premium).
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **bond call price** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.