Here it is mentioned that maximum amount payable is ( par value + interest payments )
What if, if debentures are redeemable at premium?
Will the maximum amount be ( Par value + Premium + Interest due)?
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The maximum will always be par value + the coupon payment
premium or discount is decided based on yield vs coupon payement
if yield>coupon—bond trades at a discount and vice versa
upon maturity if the investor has opted for “buy and hold ” he will not have any capital gain (if the bond was trading at discount in the beginning(due to the pull to par effect)
the payoff of the bond will always be par value + all the coupon payements
(no matter what is the intrinsic value-premium or discount)
Can you please explain the sane via an audio in more simpler way