| Call Premium | |
 1. The dollar amount over the par value of a callable fixed-income debt security that is given to holders when the security is called by the issuer. 2. The amount the purchaser of a call option must pay to the writer. |
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 1. The call premium is somewhat of a penalty paid by the issuer to the bondholders for the early redemption. 2. In order to receive the rights associated with a call option, the premium must be paid to the seller. |
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 Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Call Features: Don't Get Caught Off Guard - Learn why early redemption occurs and how to avoid potential losses. Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more. |
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