bond-basics

Premium

The amount, if any, by which the price paid by the purchaser of a Bond exceeds the Par Value of the Bond.  For example, if a $5,000 Bond is purchased for $5,500, there is a $500 Premium.

See Also

Par Value

The stated or face amount of a bond.

Hudson Yards Rail Yards

Start with the Bond Basics

Redemption

The repayment of bonds prior to their maturity date.