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Premium bond |
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Premium bondA bond that is selling for more than its par value.Premium bond Similar MatchesDefault premiumDefault premiumA differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default. Waiver of premiumWaiver of premiumAn arrangement in life insurance, which, in return for some increase in premium, ensures that policyholders have their premiums paid during periods of absence from work due to illness or accident. There is usually an elimination period (or waiting period), UK deferment period, typically several months, after which the insurers commence payments. PremiumPremiumThe extra amount you pay for a security over and above its intrinsic value. For example: Warrants: the premium on a warrant is calculated as the price of the warrant minus the difference between the exercise price and the price of the underlying asset. So if a warrant costing 8p gives you the right to buy a share at 75p, and that share was currently trading at 70p, the premium would be 3p (8-5). Investment trusts: the premium is the amount by which the share price of the investment trust exceeds its net asset value per share. e.g. If the Net Asset Value is £3.00, and the share price of the trust is £3.30, the trust is trading at a 10% premium to its NAV. In the more common situation where the share price is below the net asset value, the trust is said to be trading at a discount. Unamortized premiums on investmentsUnamortized premiums on investmentsThe unexpensed portion of the difference between the price paid for a security and its par value. Risk premium approachRisk premium approachA common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns. Further SuggestionsPercentage premiuminsurance premium Indemnity Guarantee Premium Option premium Premium Bond premium Liquidity premium Premium income Call premium Risk premium Conversion premium warrant premium Term premiums life assurance premium relief single premium life insurance Waiver of premium Tender offer premium Risk premium equity risk premium insurance premium tax option premium Forward premium High premium convertible debenture Single Premium Deferred Annuity (SPDA) premium bonds |
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