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Call Premium

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 premium
www.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 premiumCallable bonds, reinvestment risk, and credit rating improvements: role of the call premium
www.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 discountsDynamic recapitalization policies and the role of call premia and issue discounts
www.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 productsBehavioral aspects of the design and marketing of financial products
www.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 contractsThe effect of refinancing costs and market imperfections on the optimal call strategy and the pricing of debt contracts
onlinelibrary.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 efficiencyPut-call parity and market efficiency
www.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 pricesTransactions costs and the relationship between put and call prices
www.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 investigationThe call, sinking fund, and term-to-maturity features of corporate bonds: An empirical investigation
www.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 debtTo call or not to call convertible debt
www.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 thereonFinancial indexes and instruments based thereon
patents.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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