Glossary of Municipal Securities Terms


A price, in excess of par value (or compound accreted value, in the case of certain original issue discount or zero coupon bonds) and expressed as a percentage of par (or compound accreted value), that the issuer agrees to pay upon redemption of its outstanding bonds on a specific date prior to the stated maturity date. The amount of premium to be paid often declines incrementally after the initial premium call date. See: CALL PRICE; PREMIUM; REDEMPTION PREMIUM; REDEMPTION PROVISIONS.

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