Final answer:
The redemption price is the price at which a bond can be repurchased by the issuer before maturity, often including a premium over face value.
Step-by-step explanation:
The redemption price, also known as the 'bid' price, is the price at which a bond or other debt security can be repurchased by the issuer before its maturity date. This price often includes a premium over the bond's face value to compensate investors for the early termination of their investment. The redemption price is an important consideration for investors when assessing the potential returns and risks associated with a fixed-income security.