Call Price
/ˈkɔːl praɪs/
Definitions
- (n.) The price at which a bond or other security may be redeemed by the issuer before its maturity date.
The bond's call price is set higher than its par value to compensate the investor for early redemption.
Forms
- call price
- call prices
Related terms
See also
Commentary
In drafting, specifying the call price clearly in bond indentures is essential to avoid future disputes about early redemption terms.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.