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Premium Bond
(redirected from Premium Savings Bond)

    Also found in: Dictionary/thesaurus, Legal 0.01 sec.
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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com CAPTION(S): Ernest Marples, the Postmaster-General, pressing a button to start up his namesake, Ernie, for the first Premium Savings Bonds draw' Chancellor Gordon Brown has allowe dagenerous birthday bonanza for Premium Bond investors
MONEY: Ernie still proving a great catch at 50; Jeremy Gates looks at ... by Daily Post (Liverpool, England)
Byline: By Jane Hall Premium Savings Bonds were officially launched by Harold MacMillan, Chancellor of the Exchequer, in his 1956 Budget.
Bonds draw were first dismissed as a `squalid raffle' by The Journal (Newcastle, England)
Bonds draw were first dismissed as a 'squalid raffle' Premium Savings Bonds were officially launched by Harold MacMillan, Chancellor of the Exchequer, in his 1956 Budget.
Ernie's word is as good as his Bond by The Journal (Newcastle, England)
 
 
 
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