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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Premium Bond


To us, Daniel Craig. That was one prime 007.

Oh... you mean financial stuff. Right.

A prime bond is a bond that trades for a higher price than its par value. It can happen if the bond had a higher coupon or interest rate when compared with other bonds being sold. Investors are willing to pay more because the bond can make them more.