A sum in advance of to the nominal value of something

Question

1 premiumc : a sum in advance of or in addition to the nominal value of something &lt;bonds callable at a premium of six percent&gt;[M-W's Col. Dic.]I can understand the meaning when it is: a sum in addition to the nominal value of somethingWhat would it mean: a sum in advance of to the nominal value of something?'in advance of' usually means 'ahead of'.

Clive · Accepted Answer

Hi,

1 premium

c : a sum in advance of or in addition to the nominal value of something <bonds callable at a premium of six percent>

[M-W's Col. Dic.]

I can understand the meaning when it is: a sum in addition to the nominal value of something

What would it mean: a sum in advance of to the nominal value of something? I understand it to mean 'a sum paid before, ie earlier, than the nominal value is paid'.

This meaning of 'earlier' may be common in the world of finance, but I am not familiar with it in regular English.

'in advance of' usually means 'ahead of'.

Clive

Anonymous · Answer

I think what is mean't here is that the sum is "paid (which is the missing word) before".  Similar to the phrase "paid in advance" (PIA).  So it sounds like the definition you quoted is saying that the word "premium" can also mean "an amount paid for before or as a part of the nominal value of something." For example, insurance premiums, where you are actually paying "in advance" for a company to provide you (and all other member of the insurance company) money for deferred accidental event (that may or may not happen).

A sum in advance of to the nominal value of something

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