Premium Bond

A Premium Bond is a type of bond issued by a government or corporation that pays a higher rate of interest than a regular bond. The higher rate of interest is usually paid in exchange for a longer term of maturity. Premium Bonds are typically issued by governments or corporations that are in need of additional funds and are willing to pay a higher rate of interest in order to attract investors. Premium Bonds are also known as high-yield bonds.

History of Premium Bonds

The concept of Premium Bonds was first introduced in the United States in the late 19th century. At the time, the US government was in need of additional funds to finance its operations and decided to issue bonds with higher interest rates than regular bonds. These bonds were known as Premium Bonds and were issued in denominations of $50, $100, and $500. The higher rate of interest was paid in exchange for a longer term of maturity, usually five to ten years.

Premium Bonds have been used by governments and corporations around the world since the late 19th century. In the United Kingdom, Premium Bonds were first issued in 1956 by the National Savings and Investments (NS&I). The bonds are still issued by NS&I today and are popular with British investors.

Comparison Table

Summary

Premium Bonds are a type of bond issued by governments or corporations that pay a higher rate of interest than regular bonds. The higher rate of interest is usually paid in exchange for a longer term of maturity. Premium Bonds have been used by governments and corporations around the world since the late 19th century. For more information about Premium Bonds, you can visit the websites of the National Savings and Investments in the UK, the US Treasury, or other financial institutions.

See Also

• Bond
• High-Yield Bond
• Treasury Bond
• Corporate Bond
• Municipal Bond
• Zero-Coupon Bond
• Floating-Rate Bond
• Convertible Bond
• Junk Bond
• Government Bond

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