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Finance Dictionary and Glossary of Investment Terms
Call premium
Definition 1.
Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.
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Definition 2.
1. The dollar amount over the par value of a convertible fixed income and debt security. This amount is given to holders when the security is called by the issuer due to the soft call provision.2. The amount the purchaser of a call option must pay to the writer.
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