Jun 20, 2025 · A bond priced at a premium does not mean that it is expensive or that it will lose the investor money; it simply means that its coupon is higher than its yield.

Jun 6, 2025 · An investor would buy a bond at a premium price when the bond’s stated interest rate is higher than the market interest rate. A premium bond is a bond whose current selling …

Nov 3, 2025 · Bonds bought at a premium can actually help reduce volatility, generate greater cash flow, and even provide higher yields. A basic rule of thumb suggests that investors …

Jan 31, 2025 · Premium bonds trade at a price higher than their face value. Investors pay more for these bonds, typically because they have an advantage compared to other bonds that are …

Apr 12, 2025 · By understanding how to identify premium bonds, and what factors influence their premium, investors can make better decisions about buying and selling bonds above their par …

A person would buy a bond at a premium (pay more than its maturity value) because the bond’s stated interest rate (and therefore the bond’s interest payments) will be greater than those …

Aug 28, 2025 · Bondholders benefit from capital appreciation as the bond matures at its higher face value. This article explains how different bonds can be traded at a discount or premium, …

Sometimes, market conditions and lack of supply for high-quality, high-coupon bonds may necessitate buying bonds at a premium for investors looking to allocate a portion of their …

Jul 31, 2025 · Premium bonds are bonds that trade above a fixed par value while discount bonds trade below it. Both can offer opportunities for investors but it’s important to understand how …

Learn the difference between buying bonds at a premium vs discount and how it affects bond yield. Expert investment advice from Sterling Asset Management.