Description
Subtract positive parAmount from nonnegative redemptionAmount for premiumAmount and divide by par times 100 for premiumPercentOfPar.
Financial model terms depend on a currency, valuation date, and stated formula. A supplied discount or allocation rule is a modeling assumption and does not establish a market price or an appropriate investment decision.
Subtract positive parAmount from nonnegative redemptionAmount for premiumAmount and divide by par times 100 for premiumPercentOfPar.
When to use this tool
Use Bond Redemption Premium Per PAR when you need one financial arithmetic component under explicit supplied assumptions.
How to use the tool and how it works
- Enter redemptionAmount, parAmount. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read premiumAmount, premiumPercentOfPar. Use the output convention below.
Subtract positive parAmount from nonnegative redemptionAmount for premiumAmount and divide by par times 100 for premiumPercentOfPar.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| redemptionAmount | Redemption Amount | Required. Finite number; minimum 0. |
| parAmount | Par Amount | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| premiumAmount | Premium Amount | Required. Finite number. |
| premiumPercentOfPar | Premium Percent Of Par | Required. Finite number. |
{
"input": {
"redemptionAmount": 1050,
"parAmount": 1000
},
"output": {
"premiumAmount": 50,
"premiumPercentOfPar": 5
}
}Limitations and assumptions
- A below-par redemption gives a negative premium; contractual call terms, accrued interest, yield, and tax treatment are not evaluated.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Evaluate the complete cash-flow model, contract terms, and relevant professional advice before acting on the result.
References
Similar or alternative tools
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