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When a bond sells at a premium, it means it is sold at a price higher than its face value. This indicates that the bond's interest rate is higher than the current market interest rates. Investors pay a premium to secure a higher yield, which results in a lower effective yield compared to the coupon rate.

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Q: What happens When a bond sells at a premium?
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Continue Learning about Chemistry

How do you get a lis pendens bond?

To get a lis pendens bond, you typically need to work with a surety company or insurance provider that offers this type of surety bond. You will need to submit an application along with the required documentation and financial information for underwriting. Once approved, you will pay a premium for the bond, and the surety will issue the bond to you.


What is the difference between the bond's principal and the bond's par value?

The bond's principal refers to the initial amount borrowed by the issuer and repaid at maturity, while the bond's par value is the face value of the bond that is used to calculate interest payments. In most cases, the principal and par value are the same, but they can differ if the bond is issued at a discount or a premium.


If a bond rating gets better what happens to the bond price?

If a bond rating improves, it indicates lower risk and increased creditworthiness, leading to increased demand for the bond. This increased demand drives the bond price up.


When the length of a chemical bond is short what happens?

When the length of a chemical bond is short, it usually indicates a strong bond between the atoms involved. This can result in a higher bond energy, making the bond more stable and less likely to break. Shorter bonds also often correspond to a higher bond strength and a smaller bond angle, which can impact the molecule's geometry and properties.


Can a base donate or accept or bond with a hydroxide ion?

Yes, a base can accept a proton from a hydroxide ion, forming a new chemical bond. When this happens, the base becomes protonated.

Related questions

How do you find out if you have won with a Premium Bond if you have lost the Premium Bond information?

I HAVE LOST THE PREMIUM BOND INFORMATION


When was Premium Bond created?

Premium Bond was created in 1956.


WHO SELLS papaya premium jeans?

Matalan


Who sells and manages premium bonds?

hm treasury


What is a bond that sells at the stated rate considered to have sold for?

The bond that sells at the stated rate is considered to have sold at par value.


How does a premium savings bond work?

A premium savings bond is simply a bond which trades at a coupon rate that is higher than the prevailing interest rate. This increased coupon rate will cause the bond to mature faster than it otherwise would.


Does a T-Bond have a default risk premium?

yes


How long is premium bond cheque valid?

3 months


What is a Preferred financial bond?

a bond that uses stock symbol and sells like stock


What is the difference between Premium Bond holdings and value?

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.


What happens if you put in premium gas in a dodge stratus 03?

Premium is ok


When bonds are issued at a premium what is the affect on interest?

Bonds issued at a premium offer an interest rate that is above the market interest rate. Typically, a bond issuer offers a premium interest rate to offset higher risk associated with a bond offering that has a low credit rating. A purchaser of a bond offered at a premium will receive a higher interest rate but will incur a higher degree of credit risk.