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
If a bond sells for more than its par or face value, it is said to be selling at a premium
A bond that has a market price that is greater than the bond's principal or par value Contrast with discount bond
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 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