InvestorQ : What exactly do you mean by redemption of a bond or a debenture?
swati Bakhda made post

What exactly do you mean by redemption of a bond or a debenture?

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Juvina Maggie answered.
2 years ago
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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.

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