Premium bond A bond that is selling for more than its par value. Prepackaged bankruptcy A bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along with the bankruptcy petition. Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. Prepayments Payments made in excess of scheduled mortgage principal repayments.
