What is the meaning of call price?

call price is the price at which a callable bond or security is redeemable. It is used in connection with preferred stocks and debt securities having a fixed redemption value. It is the price the issuer must pay to call in the security and retire it by paying the holder. The call price often exceeds the par, or face value, of the security in order to compensate the holder for the disruption of earnings and the bother of having to reinvest the funds, possibly at a lower rate of return.

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APABarry Goldsmith. (2010). call price. Retrieved September 20, 2026, from http://smartdefine.org/call_price/definitions/1149294
ChicagoBarry Goldsmith. 2010. "call price" http://smartdefine.org/call_price/definitions/1149294 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, call price, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/call_price/definitions/1149294>.
MLABarry Goldsmith. "call price" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/call_price/definitions/1149294>