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Understanding Premium and Discount Bonds by GlendaEB is a document available to read on EtoBox.
What is Understanding Premium and Discount Bonds about?
When the terms premium and discount are used in reference to bonds, they refer to whether the bond is selling above or below its par value. A bond selling at a premium is priced higher than par value, while one at a discount is lower. Bond prices fluctuate relative to par value as interest rates change - as rates rise, prices fall and vice versa. However, factors beyond interest rates also influence whether a bond is a good investment.
- Author
- GlendaEB
- Language
- EN