Premium Bond

What Does Premium Bond Mean?
A bond that is priced higher than its par value.

Investopedia explains Premium Bond
If a bond's price is higher than its par value it is selling at a premium; this occurs because the interest rate on the bond is higher than the prevailing rates in the market, making the premium bond worth more than a bond paying a lower rate. For example, if a bond with a 5% coupon were selling at par ($1000 let's say), it would be worth less than the bond paying 7%. Therefore the bond paying 7% would have to be priced higher than par, thus equalizing the attractiveness of the two bonds.