Unamortized Bond Premium

AAA

DEFINITION of 'Unamortized Bond Premium'

The difference between the par-value or face-value of a bond and the price above this face value, at which the bond has been issued. Unamortized bond premiums do not include any interest that has been amortized or written off.


Also referred to as the amount between the face value and the amount the bond was sold at, minus the interest expense.

INVESTOPEDIA EXPLAINS 'Unamortized Bond Premium'

Referred to as part of the bond premium that will be amortized (written off) in the future. A bond premium is a bond that is priced higher than its face value. The amortized amount of this bond is credited as an interest expense. The bondholder amortizes the bond to figure out the value of the interest rate, minus the coupon rate.

RELATED TERMS
  1. Agio

    A description of the bond premium when the bond market value ...
  2. Convertible Bond

    A bond that can be converted into a predetermined amount of the ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Premium Bond

    1) A bond that is trading above its par value. A bond will trade ...
  5. Amortizable Bond Premium

    A tax term referring to the excess premium paid over and above ...
  6. Class 3-6 Bonds

    Several classes of noninvestment grade bonds held by an insurance ...
Related Articles
  1. Basics Of Federal Bond Issues
    Bonds & Fixed Income

    Basics Of Federal Bond Issues

  2. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  3. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  4. Callable Bonds: Leading A Double Life
    Options & Futures

    Callable Bonds: Leading A Double Life

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center