For example, the yield of a private enterprise bond is 7%, and 1% of it is the premium. Then, an investor who buys this bond can obtain 6% return on the bond and pay 1% for the premium. If the investor is audacious enough and do not need the insurance, that is also okay.
In this case, all of the 7% yield belongs to the investor as the instrument we designed is optional. You can choose to buy or not to buy. Whether the bond is issued at the rate of 6% or 7% is completely determined by the market according to the roadshow bidding and book building.