If a bond issue is called by an issuing company, the bond indenture usually requires that bondholders be paid a call premium.

Name: If a bond issue is called by an issuing company, the bond indenture usually requires that bondholders be paid a call premium.
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A call premium is an amount over the par value of a bond that the issuer pays to bondholders as compensation for exercising the call option to redeem the bond before its maturity date. This is typically outlined in the bond indenture.

If a Bond Issue Is Called by an Issuing Company