What is redemption loss?

This is the loss that occurs when a bond is bought at a higher price than the price at which it is ultimately redeemed. In other words, if the investor pays more for the bond than the amount they receive back upon redemption, this leads to a financial loss.

Compare: Redemption gain.

This term relates to a specific aspect of the financial world. To better understand this term, it is important to look at the context in which it is used, such as legal provisions, market conditions, or specific business practices.