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

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Accrued Interest

The dollar amount of Interest due on a Bond, computed at that Bond’s Interest Rate, from the last Interest Payment Date to the date of calculation.