redemption price

Redemption 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.
References in periodicals archive ?
The Redemption Price will not accrue interest from the Redemption Date.
TORONTO, ONTARIO: Bank of Montreal will exercise its right to redeem all of its $350,000,000 Non-Cumulative Perpetual Class B Preferred Shares Series 13 on May 25, 2015, at the redemption price of $25.25 per share, for total redemption proceeds of about $353.5 million.
Accordingly, the difference between the total excess servicing rights ("the redemption price") and the allocated basis is OID.
M2 EQUITYBITES-March 13, 2018-TransAlta sets redemption price & redemption date for 6.650% senior notes due 2018
The redemption price for each of the senior notes will be equal to USD1,000 per USD1,000 original principal amount, plus interest as applicable to, but excluding, the redemption date of August 11, 2017.
The Preferred Shares Series 23 are redeemable at Bank of Montreal's option on February 25, 2015, at a redemption price of $25.00 per share.
Payment of the redemption price for each of the Senior Notes will be made through the facilities of The Depository Trust company.
The redemption price will be equal to USD1,000 per USD1,000 original principal amount, plus any accrued and unpaid interest to the redemption date of July 23, 2017.
The Series G Preferred Stock will be redeemed at a redemption price per share equal to USD 25,000 (equivalent to USD 25 per Series G Depositary Share).