Asked by Kiran Rawal on Apr 26, 2024
Verified
Provide an appropriate definition of call premium.
Call Premium
The additional amount that must be paid by an issuer to redeem a bond before its specified call date.
- Recognize the features and intentions behind different bond provisions, including put provisions, call provisions, and protective covenants.
Verified Answer
TL
Timothy LawrenceMay 01, 2024
Final Answer :
Amount by which the call price exceeds the par value of the bond.
Learning Objectives
- Recognize the features and intentions behind different bond provisions, including put provisions, call provisions, and protective covenants.