Regular Redemption Price: Regular or general call redemption pricing is normally set at a premium price above par until the first par call date.
Special Redemption Prices: It is normally set for bonds redeemed through sinking fund or other special redemption conditions. The special redemption pricing is usually set at par value.
Par Call Problem: Problem which arises when the issuer maneuvers a call so that the issue can be redeemed at special redemption price instead of regular or general call redemption price.
Prepayment: Any principal payment paid prior to a scheduled principal payment date is called prepayment.
Prepayment option: An option which allows the borrower to repay the principal before due date.
Special Redemption Prices: It is normally set for bonds redeemed through sinking fund or other special redemption conditions. The special redemption pricing is usually set at par value.
Par Call Problem: Problem which arises when the issuer maneuvers a call so that the issue can be redeemed at special redemption price instead of regular or general call redemption price.
Prepayment: Any principal payment paid prior to a scheduled principal payment date is called prepayment.
Prepayment option: An option which allows the borrower to repay the principal before due date.
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