One key aspect of any bond investment is its current yield. When a bond is brand-new, figuring out the bond yield is relatively simple, because in most cases, bonds are issued at prices that are close ...

When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...

Bonds bought above face value add cost paid as "unamortized bond premium." Reduce premium annually to align bond's book value with redemption value at maturity. Consult tax advisor on premium tax ...