Amortizable Bond Premium
An amortizable bond premium is the above-par amount investors allocate over a bond's remaining life for tax, accounting, and yield purposes.
Fixed-income terms for deep discounts, shallow discounts, amortizable bond premiums, and unamortized bond premium or discount balances.
Deep discount and amortized premium or discount terms explain how large price differences from par are measured and how premiums or discounts may be recognized over time.
Use this branch when a bond’s price is far below face value, when premium or discount accounting affects carrying value, or when tax and yield analysis require amortization detail.
| Term | What it clarifies |
|---|---|
| Deep Discount Bond | A bond trading or issued at a substantial discount to par. |
| Deeply Discounted Security | A broader discounted fixed-income security label. |
| Shallow Discount Bond | A bond trading slightly below par. |
| Amortizable Bond Premium | Premium that may be recognized over time under applicable rules. |
| Unamortized Bond Discount | Discount not yet recognized through amortization. |
| Unamortized Bond Premium | Premium not yet recognized through amortization. |
Check issue price, purchase price, face value, remaining maturity, coupon, call schedule, yield basis, tax status, accounting treatment, and whether the bond was originally issued at a discount or later traded down in the secondary market.
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An amortizable bond premium is the above-par amount investors allocate over a bond's remaining life for tax, accounting, and yield purposes.
A deep discount bond trades far below face value, often because of low coupon, credit risk, long maturity, or zero-coupon structure.
A deeply discounted security is issued or trades far below redemption value, making accretion, yield, and tax treatment central.
A shallow discount bond trades modestly below par value, usually because its coupon is slightly below current market yields.
Unamortized bond discount is the remaining below-par issuance discount not yet accreted into interest expense or carrying value.
Unamortized bond premium is the remaining above-par amount not yet allocated to income, tax basis, or carrying value.