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|Subject: Re: Question on callable bonds||Date: 3/11/2013 2:56 PM|
|Author: Wradical||Number: 34821 of 35400|
I see many callable bonds are selling well above par. For example, EMN.GG selling at $119; call frequency continuous.
If I buy this bond today and it is called tomorrow, do I only get back 100?
Maybe, or it may be callable at a premium. The call price is contractually set in the terms of the bond. This is spelled out in the "details" tab, if you look into buying it online.
And if a bond is callable, that's where the "YTC" (yield to call date) and "YTW" (yield to worst) become pertinent.
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