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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Bond At Premium

Definition:

A bond that is selling for more than its stated value.

Why would it sell for more than its value? Investors might be certain the bond will pay off, or its credit rating may have been upgraded since the bond had been issued. Or it's possible that interest rates have dropped and that bond looks more appealing than the ones being issued now.