premium bond Synonyms
No Synonyms and anytonyms found
premium bond Meaning
Wordnet
premium bond (n)
a government bond that bears no interest or capital gains but enters the holder into lotteries
premium bond Sentence Examples
- 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.
FAQs About the word premium bond
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.
