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Premium Bond

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Premium bond
A bond that is selling for more than its par value.
Premium Bond
A bond with a price higher than its face value. A premium bond occurs when a particular bond's coupon rates exceed the interest rates prevailing at the time. For example, if a bond was issued with a 5% coupon and most other bonds are paying 2%, this bond has more value on both the primary and secondary markets. As a result, it is more expensive and is sold at a premium.
premium bond
A bond that sells at a price above its par value. An investor must be careful about purchasing a bond that is selling at a premium because of the possibility of a call by the bond's issuer for sinking fund requirements or for refunding. Except for convertible bonds, the size of a bond's premium usually can be expected to decline as the bond approaches maturity, at which time it will be paid off at par.
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Premium Bonds are a unique type of product, available exclusively through National Savings.
National Savings What Everybody Ought to Know About National Savings ... by Thomasina Miers / Finance and Investment community
John Bartlett, prosecuting, said a Premium Bond account with National Savings and Investments was opened in 2001 for Kurt, who was then 11, with pounds 3,000 and another pounds 13,000 was invested later that year.
Mum's pounds 10k bond fraud by Birmingham Mail (England)
ONE of the two pounds 1million Premium Bond jackpots is to be replaced by a range of smaller prizes.
More prizes as pounds 1m win is scrapped; WINNINGS by The Mirror (London, England)
 
 
 
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