7.22.2005

Q&A: How is a regular redemption price different from...

...a special redemption price?

A regular redemption price is the normal call price for a typical callable bond (after the first call date). It is usually above par until the first par call date.

Special redemption prices are for bonds redeemed from through the sinking fund and through other provisions, and the proceeds from the confiscation of property (through the right of eminent domain or the forced sale or transfer of assets due to deregulation.) A special redemption price is usually par value.

Category: C++ Quant > Debt

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