Call Premium


Call Premium
1. The dollar amount over the par value of a callable fixed-income debt security that is given to holders when the security is called by the issuer.

2. The amount the purchaser of a call option must pay to the writer.

1. The call premium is somewhat of a penalty paid by the issuer to the bondholders for the early redemption.

2. In order to receive the rights associated with a call option, the premium must be paid to the seller.


Investment dictionary. . 2012.

Look at other dictionaries:

  • 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. The New York Times Financial Glossary …   Financial and business terms

  • 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 ( redemption) the bond or share of preferred stock before its scheduled maturity date. Bloomberg Financial Dictionary …   Financial and business terms

  • call premium — redemption premium …   Accounting dictionary

  • call premium — noun The amount over par value an issuer must pay to redeem a callable bond on a call date …   Wiktionary

  • call premium — The difference between a bond s call price and its par value. Amount paid by issuer over par or face value upon calling a security in for payment or redemption …   Black's law dictionary

  • Call option — This article is about financial options. For call options in general, see Option (law). A call option, often simply labeled a call , is a financial contract between two parties, the buyer and the seller of this type of option.[1] The buyer of the …   Wikipedia

  • Call Privilege — The provision in a bond indenture that gives the bond issuer the option to redeem all or part of the bond issue, at pre determined prices on certain specified dates. These dates are known as call dates and form the call schedule. The term call… …   Investment dictionary

  • Premium-rate telephone number — Premium rate telephone numbers are telephone numbers for telephone calls during which certain services are provided, and for which prices higher than normal are charged. Unlike a normal call, part of the call charge is paid to the service… …   Wikipedia

  • Call of Duty Elite — URL …   Википедия


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