Call-premium definitions

A premium that bond issuers must pay to purchasers of their callable bonds to compensate them for the fact that the bonds may be called before maturity and the bondholders may not receive as much interest over the life of the bond as anticipated. The call premium is the amount above the value at maturity that the issuer must pay to the bondholder for possibly calling the bond.
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(finance) The amount over par value an issuer must pay to redeem a callable bond on a call date.
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