Discover how below par bonds work, as they trade for less than their face value. Learn why bonds might trade at a discount due to market and economic conditions.

Discover how put bonds give bondholders the right to compel issuers to repurchase bonds before maturity, elucidating their ...

If you’re a bond investor, the term “par value” is one you’re intimately familiar with. It’s the original issue value of the bond, also called its face value or nominal value. It’s an important ...

Don’t even think of buying a bond until you’ve read this list. The basic idea of bond investments is easy to understand. You simply buy a debt obligation, or bond, from an issuer, collect regular ...

If you’re an equity investor, you buy stocks at the current market price and hope they appreciate. For debt investors, it’s the opposite concept. Investors buy bonds based on their face value: the ...

Bonds help add diversity to your portfolio and control risk. But they can be complicated. Learning about how to buy and sell a bond is just as important as why to buy or sell a bond. These two things ...

The bonds that companies and governments sell to borrow money pay a fixed amount of interest each year called the coupon rate. Each bond also has a face (or par) value. Bonds have a specified lifetime ...

If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.

Par value is an arbitrary low value assigned to shares to meet legal requirements. To compute par value of issued shares, multiply the number per share by total shares. Low par value reduces financial ...

Before we can discuss bonds in depth, it is important that we establish a common understanding of what bonds are and how they work. As a starting point, a bond is a contractual obligation to make a ...