Regardless of an assisted living community's fee structure, when choosing a senior living residence, it is important to consider the quality of care, how the resident adapts to the new environment and the long-term affordability of the community.
When a bond is issued at a premium, that means that the bond is sold for an amount greater than the bond's face value. This generally means that the bond's contract rate is greater than the market rate.
A bond issued with a $1000 par value that trades at $1100 is trading at a premium, while one that falls to $900 is trading at a discount. A bond trading at its face value is trading âat par.â. When a bond is first issued, it has a stated coupon â the amount of interest thatâs paid on its $1000 face value. A bond with a coupon of 3% pays $30 annually, and it will continue to do so regardless how much the bondâs price fluctuates in the market after its issuance. Say the bondâs price rises to $1050 after a year (meaning that it now trades at a premium). At this time, the bond is still paying investors $30 a year, but it now trades with a yield to maturity of 2.86% ($30 divided by $1050).