redemption price
(redirected from Redemption Prices)Redemption price
See: Call price
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.