New Investor’s Guide to Premium and Discount Bonds

The advantages of buying bonds at a premium change and may disappear, however, if the bond is “callable,” which means that it can be redeemed – or called – (and the principal paid off) before maturity if the issuer chooses.Issuers are more likely to call a bond when rates fall since they don’t want to keep paying above-market rates, so premium bonds are those most likely to be called …

https://www.thebalance.com/premium-vs-discount-bonds-417066