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 ...
Par value is the face value of a security. Both stocks and bonds have a par value, which is set by the issuer of the security. Par value remains fixed for the life of a security, unlike market value, ...
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 ...
Discover what it means for a bond to trade above par. Learn why these bonds, priced higher than their face value, attract ...
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 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 ...
Learn how bond pricing works by learning how to value a bond in just 10 minutes. Bonds are a more complex investment than common stocks as their prices are immediately impacted by things like ...
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 ...
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 ...