The amount above face value (PAR) that a bond will bring on the open market. The bond premium is usually expressed as a percent and is calculated by dividing the bond's face value by its market value.
Related information about bond premium:
- Premium Bond Definition | Investopedia
A bond premium will reduce the yield to maturity of the bond, while a bond discount will enhance its yield. The size of the premium will decline as the bond ...
- Amortizable Bond Premium Definition | Investopedia
Depending on the type of bond, the premium can be tax deductible and amortized over the life of the bond on a pro-rata basis.A bond premium occurs when the ...
- Bond Premium with Straight-Line Amortization | AccountingCoach.com
Understand the cause of the premium on a newly issued bond. The straight-line method of amortizing the premium on bonds payable is illustrated and the ...
- Why would someone buy a bond at a premium? | AccountingCoach ...
The bond premium is the present value of both the future interest payments and the maturity amount minus the bond's undiscounted maturity amount. In short ...
- Amortizing Bond Premium Using the Effective Interest Rate Method ...
Learn how to amortize the premium on bonds payable by using the effective interest rate method. Understand why the effective interest rate method is ...
- What is bond premium? definition and meaning
Definition of bond premium: Amount by which the purchase price of a bond is greater than its par value. See also bond discount.
- Bond Premium - Financial Dictionary - The Free Dictionary
The return over and above the risk free rate of return that an investor expects in exchange for each additional unit of risk. According to Markowitz portfolio theory, ...
- 26 USC § 171 - Amortizable bond premium | LII / Legal Information ...
In the case of any bond, as defined in subsection (d), the following rules shall apply to the amortizable bond premium (determined under subsection (b)) on the ...