call premium

Call premium

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.

Redemption Premium

Money over and above the face value of a callable bond that the issuer pays to bondholders if the bond is called. A callable bond is a bond that the issuer is permitted to redeem or repay before the maturity date, depriving the bondholder of future coupon payments. Usually the issuer does this if it can reissue the same amount of debt at a lower interest rate. The redemption premium exists to compensate bondholders for some of their lost interest payments. It is especially useful if they can only reinvest in securities with a lower return rate. The redemption premium is also called the call premium.

call premium

The difference between the principal amount of a security and the price at which the security can be called by the issuer. During the first few years a call is permitted, the premium is generally equal to one year's interest. Thereafter, the premium gradually declines to zero at maturity. Calls for sinking fund requirements are usually made at par rather than at a premium. Also called redemption premium.

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References in periodicals archive ?

According to the company, the proceeds of USD505m from the New Term Loan B were used to fully repay all principal outstanding under both the senior credit agreement and unsecured term Loan B credit agreement, to pay the call premium on the Unsecured Term Loan B, as well as to fund general corporate uses.

Hanger concludes new USD605m senior credit facility

However, included in the 2016 quarter was a call premium of USD482,000 that Bank Mutual received on a mortgage-related security that was called by its issuer.

Bank Mutual reports USD4.5m net income in Q1 2016

The Philippine National Police's HPG proposed the deployment of what they call premium buses to reduce the volume of vehicles on Epifanio delos Santos Avenue (Edsa).

HPG eyes deployment of 'premium buses' to decongest Edsa

It's bad enough that there are callous crooks out there, happily cheating consumers out of cash by sneakily encouraging them to call premium rate numbers through scams and under-hand tactics.

Shameful cost of helplines; OUR SAY WITH EMMA MCKINNEY The Mail's consumer editor

But how can a Government which makes the unemployed, sick and disabled call premium phone lines to find out about benefits tell doctors not to exploit the needy?

It's just a sick joke; LETTERS; Rip-off phone charges for ill people who want to see their doctor must be banned; PS100 Letter

Former police officer Ronald Clark and colleague Ian Johnson advertised jobs which did not exist then ripped off those who asked about them by making them call premium rate numbers.

Conmen fleeced people desperate for jobs; Scam ran for years

The fraud centred on the use of Sim cards - which store the phone's information - to call premium phone lines.

Teesside duo held as scam shut down

CAMPAIGNERS were outraged yesterday after it emerged rape victims are being forced to call premium rate lines to get help.

RAPE VICTIMS FORCED TO PAY FOR HELP CALL; EXCLUSIVE Fury at government centre's premium rate line

X Factor was one of several TV shows under fire in the furore, which erupted when it emerged viewers were asked to call premium rate lines on Richard and Judy's You Say, We Pay competition after the competition had closed.

X Factor phone blunder puts pounds 200,000 into ChildLine charity funds

Spoof companies are phoning people's land lines or mobiles, offering them cash rewards if they call premium rate numbers.

Beware of phone frauds

TV quiz shows which ask viewers to call premium rate phone lines for the chance of winning a big cash prize are to be investigated by an influential MPs' committee, it was announced yesterday.

Phone-in probe

SCRATCHCARDS claiming to offer extravagant prizes leave most ``winners'' out of pocket by encouraging them to call premium rate telephone lines, the Office of Fair Trading warned today.