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.
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 ...
Discover how put bonds give bondholders the right to compel issuers to repurchase bonds before maturity, elucidating their ...
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 ...
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 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.
Bonds are a security that represents a loan from an investor to a company or government agency. Learn more about the pros, cons, types or bonds, and how they differ from stocks. Bonds are essentially ...
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 ...