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.

Bank deposits, Mutual Funds, Stocks, Futures, and Options– investors always seek new investment avenues. There is a wide range of security alternatives available based on the risks associated and the ...

A bond is a type of debt issued by a company or a government agency to raise money. The person who buys a bond pays the fair market value for the bond in exchange for a guaranteed amount when the bond ...

When the interest rate of a particular bond is higher than the market interest rates, it attracts investors. The higher demand leads the bond to trade at a higher market value than the par value. The ...

Bonds are debt obligations issued by corporations and government entities. They are typically issued at face value and most are available in $1,000 increments. The durations of bonds can be as short ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

When companies issue a bond, they do so with a par value and a coupon rate: the terms that dictate the yield of the bond for potential investors. However, once they reach the market, bonds can trade ...