The amount to be paid over and above the face value if the issuing corporation calls a security for redemption before maturity.
Call price Call protection
a payment made to the bondholder if the borrower pays off the bonds before they mature
Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.
In the case of straight or convertible bonds or preferred stock it's the amount in excess of the par value of the security the issuer may have to pay for the priviledge of redeeming the security before maturity. For example, if the par value is $1,000, the issuer may have to pay $1,100 to redeem the bond. The call premium can vary with the timing of the call feature. For example, the call premium may be $100 on a bond that's callable 5 years from issuance. The premium may be only $50 if the bond is callable 10 years after issuance. The term call premium can also refer to the purchase price of a call option.
The amount that the buyer of a call option has to pay to the seller for thse right to purchase a stock or stock index at a specified price by a specific date.
The dollar amount over the par value of a security given to holders when the security is called by the issuer (see Callable Bond).
the price above the par value that must be paid if the bond is redeemed before the maturity date
Price premium above par to redeem bonds/preferred stocks.
A dollar amount, usually stated as a percentage of the principal amount called, paid as a "penalty" or a "premium" for the exercise of a call provision.
1: In call options, it is the dollar amount that a buyer has to pay the writer (seller) for the right to buy a particular stock or stock index at a specific price by a specific date. See: Call Option; Options; Writer 2: In bonds, preferred securities, and convertible securities, it is the dollar amount over par that the issuer pays to a holder for redeeming the security before its maturity. See: Bond; Convertible Securities; Maturity Date; Par; Preferred Stock; Redemption
The difference between a callable security's call price and par value (or book value).
The amount a buyer must pay a seller for the right to purchase a stock at a specified date and price.
A call premium is the dollar amount that the buyer of a call option pays to the seller for the right to purchase a particular security at a specified price by a specified date. When this term is applied to bonds, preferred securities and convertible securities, it is the dollar amount over par that the issuer pays to an investor for redeeming the security before its maturity date.
The difference between the call price of a bond or preferred stock and its stated or par value. To Top