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Finance Glossary

Just call us Bond. Amortized bond.

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Bond At Premium


A bond that is selling for more than it stated value. Investors might be certain the bond will pay off or its credit rating has been upgraded since the bond had been issued. In that case that 8% par value bond could be bought for $600,000. It still pays $40,000, its effective yield is $40,000/$600,000.