redemption price

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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.