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What does at a premium mean?

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at a premium

1. Referring to a financial instrument that is trading at a price above its par or face value.
2. Referring to the forward rate for a given forward maturity when it is higher than the current spot rate, where the first (left hand) number is higher than the second (right hand) number.

  • above face value (1.); above par (1.); above par value (1.).
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