Bond Call Price

Bond call price is the stated price at which the issuer of the bond may repurchase the bond from the current holder of the bond prior to the maturity date by use of a call feature. The call price exceeds the par value of a bond by the amount of 1 year’s interest. For instance, a $1,000 bond with a 10% coupon interest rate will have a call price of $1,100 [$1,000 + ($1,000 x 10%)].