Understanding Premium Bonds: Implications and Strategies for Investors
In the world of fixed-income investments, bonds are a cornerstone asset class that provides investors with predictable income streams and diversification. However, the dynamics of bond pricing can often lead to confusion, particularly when it comes to bonds trading at a premium. This article delves into the intricacies of premium bonds, exploring their implications for investors, the factors that contribute to their pricing, and strategic considerations for managing such investments.