Redemption value is the price at which the issuing company may choose to repurchase a
security before its maturity date.
A bond is purchased "at a discount" if its redemption value exceeds its purchase price. It is purchased "at a premium" if its purchase price exceeds its redemption value.
Thus, the right will only be exercised at a discount.
Callable or Redeemable Bonds
sec.gov
See: Callable bond
A callable bond (also called redeemable bond) is a type of bond (debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. In other words, on the call ...
; Embedded option
An embedded option is a component of a financial bond or other security, which provides the bondholder or the issuer the right to take some action against the other party. There are several types of options that can be embedded into a bond; common ...
; Convertible bond
In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock ...
.
References
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Bonds (finance)
Embedded options
Fixed income analysis
Bond valuation