Why premium bonds are better?

Question

If you pay more than you receive (bonds price is greater than par value) whats the point then?

Answer 1

If you're paying a premium on the bond on the secondary market this is due to the free market effect of moving the bond's yield closer to the current yield for current issue debt.

For example, if the current issue is a $1000 par bond at 3.5% then a past issue bond of $1000 par at 5% will trade at a premium to its par value because the interest rate is higher than what you will get from a current issue bond.