Fixed Income

Premium Bond

Definition

What is Premium Bond?

A bond trading above its face value.

Example in practice

A high-coupon bond priced at ₦1,080 trades at a premium.

Keep learning

A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.