Call Premium

1. The dollar amount over the par value of a callable fixed-income debt security that is given to holders when the security is called by the issuer. 

2. The amount the purchaser of a call option must pay to the writer. 



|||1. The call premium is somewhat of a penalty paid by the issuer to the bondholders for the early redemption. 

2. In order to receive the rights associated with a call option, the premium must be paid to the seller.