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Why holders of redeemable bonds are paid a call premium when the issuing company calls the bonds?

When bondholders of redeemable bonds have their bonds called, this is a disadvantage to them. The issuing company would only have called the bonds if interest rates had fallen. As a result, bondholders would only be able to reinvest the amount received at the now lower rates. To provide some compensation, bondholders are paid a call premium.

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