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Call option: Callable Bonds and Call Options: An Overview

For example, a bond issued at par (“100”) could come with an initial call price of 104, which decreases each period after that. Issuers can buy back the bond at a fixed price, i.e. the “call price,” to redeem the bond. If callable, the issuer has the right to call the...

Handbook: Fair value measurement

It relies on the principle of substitution, meaning a buyer will not pay more for an asset than the cost of a comparable substitute. This method involves analyzing recent sales of similar assets, or “comps,” and adjusting for differences in features, condition, and...