Premium bond

Premium bond,

Definition of Premium bond:

  1. A premium bond is a bond trading above its face value or in other words; it costs more than the face amount on the bond. A bond might trade at a premium because its interest rate is higher than current rates in the market.

  2. Bond with interest rate higher than the market interest rate and, therefore, selling at a price above its par value.

  3. A bond that's trading at a premium means that its price is trading at a premium or higher than the face value of the bond. For example, a bond that was issued at a face value of $1,000 might trade at $1,050 or a $50 premium. Even though the bond has yet to reach maturity, it can trade in the secondary market. In other words, investors can buy and sell a 10-year bond before the bond matures in ten years. If the bond is held until maturity, the investor receives the face value amount or $1,000 as in our example above.

How to use Premium bond in a sentence?

  1. A bond might trade at a premium because its interest rate is higher than the current market interest rates.
  2. A premium bond is a bond trading above its face value or costs more than the face amount on the bond.
  3. Investors are willing to pay more for a creditworthy bond from the financially viable issuer.
  4. The company's credit rating and the bond's credit rating can also push the bond's price higher.

Meaning of Premium bond & Premium bond Definition

Premium Bond,

Premium Bond Definition:

  1. Definition of Premium Bond: Capitalization bonds are worth more than their face value, that is, they are worth more than the value of the bond. A bond can be traded at a premium because its interest rate is higher than its current market value.

    • Savings bonds are securities that are traded more than their face value or more expensive than the value of the securities.
    • A bond can be traded at a premium because its interest rate is higher than its current market value.
    • A company's credit rating and bond's credit rating can also increase the value of a bond.
    • Investors are willing to pay more for solvent securities than for a financially viable issuer.

  2. The wizard's sale price is higher than the nominal price or refund amount.

Literal Meanings of Premium Bond

Premium:

Sentences of Premium
  1. If the calculations are correct, the income of the pensioner entitled worker includes the premium in addition to his salary which he should pay to the insurance company for equal rights.

Synonyms of Premium

insurance charge, insurance payment, regular payment, instalment, surcharge, additional payment, extra amount, extra charge, additional fee, bonus, extra, percentage, perk, recompense, remuneration, prize, reward

Bond:

Meanings of Bond:
  1. Relationships between people or groups based on shared feelings, interests or experiences.

  2. A contact between two surfaces or objects that is specially connected by adhesive, heat or pressure.

  3. Agreement with the power of law.

  4. The model in which bricks are placed to guarantee the strength of the resulting structure.

  5. Summary for Bond Paper

  6. Sticking or sticking to something else, especially using glue, heat or pressure.

  7. Connect or connect with chemical metadata.

  8. Stack the stones in an overlapping pattern to form a strong structure.

  9. Storage (taxable goods)

Sentences of Bond
  1. There is a link between them

  2. There is no effective relationship between concrete and steel

  3. Marriage as a legal bond may be old, but I doubt it.

  4. Link in English

  5. Press content to join layers

  6. Neutral molecules are attached to the central nucleus

  7. The strong spread was in the shape of a drum and was made of stone, which was connected horizontally with layers of red tiles.

Synonyms of Bond

friendship, relationship, fellowship, partnership, association, affiliation, alliance, coalition, promise, pledge, vow, avowal, oath, word, word of honour, solemn word, guarantee, assurance, join, connect, fasten, fix