According to The Defiant, an early sale of Pendle Principal Tokens replaces the scheduled maturity payoff with a market price. The mechanism allows token holders to redeem their tokens before the original maturity date by selling them on a secondary market rather than receiving the predetermined maturity amount.
The article explains a worked example that breaks down how annualized yield, redemption units and associated costs interact under this model. It shows the calculation process without providing numerical outcomes or additional details beyond what is demonstrated in the example.
