LeoGlossary: Price to Call (Municipal Bond)

How to get a Hive Account


Also called redemption price.

The price to call, refers to the price at which an issuing municipality can redeem a municipal bond. Oftentimes, these prices are set when the securities are first issued in order to inform potential investors of the added risk of a callable bond.

For example, a municipality can issue a general obligation bond with a face value of $5,000 and a price to call of $5,500. If the municipality wanted to reduce its future payment obligations, it could repurchase the outstanding bonds for $5,500.

General:

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