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What is Redemption of Bond/Debenture?

April 26, 2017Bond debenture redemption

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What is Redemption of Bond/Debenture?

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[Top ] On reaching the date of maturity, the issuer repays the money borrowed from the investors. This is known as Redemption or Repayment of the bond/debenture. If the redemption proceeds are more than the face value of the bond/debentures, the debentures are said to be redeemed at a premium. If one gets less than the face value, then they are redeemed at a discount and if one gets the same as their face value, then they are redeemed at par.