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Finance Dictionary and Glossary of Investment Terms
Redeemable
Definition 1.
Eligible for redemption under the terms of an indenture.
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Definition 2.
Able to be redeemed prior to maturity. The term usually applies to bonds and convertible securities. The issuer of a callable security has to state the conditions under which the security may be called at the time of issue. For most securities, there is a certain initial time period in which the security cannot be called. A bond will usually be called when market interest rates fall below the yield being paid on the bond (bonds are usually called when the price rises to a certain point). To reflect this risk, a callable security is usually priced lower than a non-callable security. also called callable.
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