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Definition of premium put - 1 dictionary result
Financial Dictionary

premium put

A put price on a bond that is above par value. An example would be a $1,000 principal amount bond with a put price of $1,100 ten years after issue. The purpose of including a premium put is to reduce the coupon rate of interest that must be paid to sell the issue. Compare yield to put.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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