Call price

A call price is the price at which the holder of a bond can be forced by the issuer to sell back the bond to the issuer. A call occurs prior to the maturity date of the bond, usually because the issuer can refinance the debt at a lower interest rate.  The call price is typically the face value of the bond, plus an additional percentage. The amount of the call price and the dates during which it can be enacted are specified in the indenture agreement associated with the bond.

The call price is also known as the redemption price.

Related Courses

Accounting for Investments 
Corporate Finance 
GAAP Guidebook