Why is the redemption value of a bond usually higher than the initial price of that bond?
I understand the redemption value of a bond to be the price an issuer of a bond has to pay in order to redeem a bond before its maturation. I also understand that the owner of the bond can redeem a bond too, which confuses me. Is it that there is a set redemption value of a bond, i.e., $1200 for a bond that was initially priced at $1000, and the bond can be redeemed by the issuer if it's callable or if the owner agrees to redeem it (if not callable), or it can be redeemed by the owner if the owner deems it advantageous but in this case the issuer would also have to agree to redeem it. (does the issuer have to agree?) I know there's something I'm missing, and if anyone can help that would be greatly appreciated. Thank you very much