Bond Premium

See Also

Bond discount.

United States Tax Concept of Amortizable Bond Premium

An Amortizable Bond Premium is the amount paid over the face value of the bond. You reduce your taxable bond interest by your bond premium amortization amount each year until the bond matures.

United States Tax Concept of Bond Premium

This is the amount over the face value of a bond that you pay to purchase a bond which is paying an interest rate that is higher than the current market rate on newly issued bonds.