premium
When the coupon rate (the contractual periodical "interest" payments) are lower than the yield (the market required return) the bond will be in discount. This discount makes up for the low value of the coupons.
To calculate present value of the bond you also need to know market interest rate. If , for example these companies were issuing their bonds in the different time and market interest rate was different then bond could be sold at premium(the bond will cost more then its face value), par (same as face value), and discount (bond will cost less then face value.)
High risk bonds are called junk bonds.
Interest rates increase as perceived risk increases. Government bonds have virtually no risk. Junk bonds are so called because they carry a high risk of default.
Premium bonds were introduced by the Chancellor of the Exchequer, Harold Macmillan, in the United Kingdom in 1956. Premium bonds are a form of government savings bond where instead of earning interest, holders are entered into a monthly prize draw.
The NS&I Premium Bonds is a lottery bond issued by the United Kingdom. Premium Bonds was introduced by Harold Macmillan in the year 1956 and provides instead of paying the interest to a bond, it pays with a prize fund from which a monthly lottery distributes tax-free prices.
There are many things that separate premium bonds from regular bonds. Premium bonds, unlike regular bonds, are any bonds that are already trading at a price above par.
Bonds issued at a premium always have
Premium bonds offer higher interest rates than bonds sold at par. However, there is a premium cost that one must pay. Don't let that deter you, as the extra interest should more than pay the premium when the bond reaches maturity. The other benefit of Premium bonds is that they are less volatile than par bonds.
If you are referring to the high value premium bond winners table on the NS&I website, the Holding is the total amount of premium bonds held and the Bond Value is the block of premium bonds the winning number fell in, eg Holding £30,000, Block Value £1000 means that the winner holds 30,000 premium bonds and the winning number fell within a block of 1000 consecutively numbered bonds.
Premium Bonds
hm treasury
premium
Premium bonds are bonds that you buy that make you eligible to win a cash prize every month. Even if you do not win, your bonds will be 100% secure although you they may become less valuable over time due to inflation.
As with any investment, premium bonds do have a risk associated with them. If a person truly knew the result, there would be many very wealthy people. In most cases, when the stock market is down, bonds do well.
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