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 ...

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.

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 can help to balance out risk in a portfolio while also generating income in the form of interest from regular coupon payments. When a bond is issued it’s assigned a fixed par value and a set ...

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 ...