Call Premium

A dollar amount, usually stated as a percentage of the principal amount called, paid as a ?penalty? or a ?premium? for the exercise of a call provision.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.