Business and Personal Finance Dictionary

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• CALL PREMIUM
  
  The amount of money that must be paid to the bondholder in addition to the par amount/accreted value of the bond in order to exercise a redemption provision. Premiums are usually associated with optional call provisions. When a bond is said to be "callable on 11/1/99 at 102", the first optional call date is on 11/1/1999 and the call price is 102%, of which the 2% above par is the call premium expressed as a percentage of par (or accreted value in the case of most callable CABs).
  
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