Unamortized Bond Premium

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.


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