premium bond (Meaning)

Wordnet

premium bond (n)

a government bond that bears no interest or capital gains but enters the holder into lotteries

No Synonyms and anytonyms found

A premium bond is a type of investment where the bond is priced higher than its face value.
Investors are attracted to premium bonds because they offer a higher coupon rate than the prevailing interest rates.
Premium bonds are often considered safer investments due to their higher yields and lower risk of default.
When a bond is issued at a premium, it means investors pay more than the face value to acquire it.
Premium bonds can provide a steady stream of income through regular interest payments.
The premium bond's price will gradually decrease over time as it approaches maturity and converges with its face value.
Investors may choose premium bonds to diversify their portfolio and potentially earn higher returns.
Premium bonds are typically issued by governments, municipalities, or corporations with strong credit ratings.
Investors should carefully assess the terms and conditions of premium bonds before investing to understand the potential risks and rewards.
The market value of premium bonds may fluctuate based on changes in interest rates and market conditions.

a government bond that bears no interest or capital gains but enters the holder into lotteries

No synonyms found.

No antonyms found.

A premium bond is a type of investment where the bond is priced higher than its face value.

Investors are attracted to premium bonds because they offer a higher coupon rate than the prevailing interest rates.

Premium bonds are often considered safer investments due to their higher yields and lower risk of default.

When a bond is issued at a premium, it means investors pay more than the face value to acquire it.