Redemption value is the price at which the issuing company may choose to repurchase a security before its maturity date.[1]
A bond is purchased "at a discount" if its redemption value exceeds its purchase price. It is purchased "at a premium" if its purchase price exceeds its redemption value.[1] Thus, the right will only be exercised at a discount.
[2]
See: Callable bond; Embedded option; Convertible bond.
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