What is 'Call Premium'
Call premium is 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.
Explaining 'Call Premium'
1. The call premium is somewhat of a penalty paid by the issuer to the bondholders for the early redemption.
Further Reading
Setting the optimal make-whole call premiumwww.tandfonline.com [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Callable bonds, reinvestment risk, and credit rating improvements: role of the call premiumwww.sciencedirect.com [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Dynamic recapitalization policies and the role of call premia and issue discountswww.jstor.org [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Behavioral aspects of the design and marketing of financial productswww.jstor.org [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
The effect of refinancing costs and market imperfections on the optimal call strategy and the pricing of debt contractsonlinelibrary.wiley.com [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Put-call parity and market efficiencywww.jstor.org [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Transactions costs and the relationship between put and call priceswww.sciencedirect.com [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
The call, sinking fund, and term-to-maturity features of corporate bonds: An empirical investigationwww.jstor.org [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
To call or not to call convertible debtwww.jstor.org [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
Financial indexes and instruments based thereonpatents.google.com [PDF]With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond's remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium. The commonly accepted …
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