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

Average Life

Number of years to the point at which half of the principal of the bond will have been retired, which in turn gives an indication as to how fast the principal is expected to amortize.