a method of financial investment available to UK citizens where, instead of interest payments, investors have the chance to win tax-free prizes, or get their money back
A premium bond sells at a current market price that is more than its face value Bonds sell at a premium when the coupon on the bond is higher than prevailing rates For example, you might have to pay $1,090 for a bond with a 6% coupon if new issues yielding 5 5% are available for $1,000 BACK TO TOP
In Britain, premium bonds are numbered tickets that are sold by the government. Each month, a computer selects several numbers, and the people whose tickets have those numbers win money. a document that you buy from the government in Britain, which gives you the chance to win a large amount of money each month
A bond whose market price is above its face value (or "par value") Because bonds usually mature at face value, a premium bond has less potential to appreciate in price than a par bond does