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.
When investors buy fixed-income securities, they often purchase them at prices above or below face (or par) value, depending on what has happened in the market. Buying higher than face value is known as buying at a premium. Buying less than face value is known as buying at a discount. Amortization or accretion calculations are used to adjust the cost basis from the purchase amount to the expected redemption amount. This spreads out the gain or loss over the remaining life of the bond instead of recognizing the gain or loss in the year of the bondâs redemption.