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Redemption

Return of the principal on the date set by the terms of the issue; after it the security ceases to exist.

How to read the number

This is the one moment when the price of a bond is known in advance and owes nothing to the market. That is why short issues fluctuate less than long ones.

When the metric lies

The bond leaves the portfolio at once while the cash arrives later. The gap between the two events is routinely read as a missing position.

Also known as: maturity payment, principal repayment

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