redemption price

(redirected from Redemption Prices)

Redemption price

Redemption Price

The price at which a bond may be repurchased by the issuer before maturity. The price is set at the time of the issue. Redemption prices are set to reduce the issuer's risk of default; that is, the issuer may have a concern that it will not be able to make all coupon payments and redemptions at maturity and may cut its losses by redeeming at the redemption price. One may refer to the redemption price as the call price.

redemption price

1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share.

2. See call price.

Mentioned in ?

References in periodicals archive ?

The bank has announced redemption prices for each of the three Toronto Stock Exchange-listed iPath(R) exchange traded notes (ETNs) that it previously announced it would redeem on May 23, 2014.

Holders of the ETNs will receive a cash payment equal to the redemption price on May 15, 2014.