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 a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...
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.
When a government or corporation issues a bond, it does so with a specific par value and interest rate. Once in the market, those values don’t change; however, the value of a bond can change depending ...
The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...
Savings bonds, issued by the U.S. Treasury, represent a safe and secure long-term investment. Each bond's value is influenced ...
Most investors reach for a broad, market-value-weighted bond fund to fill the bond portion of their portfolio. While no weighting approach is perfect, market-value weighting often provides the most ...
Series EE savings bonds stop earning interest after 30 years. You can cash in a Series EE bond after one year. The method for checking your bond’s value depends on if it is electronic or paper. When ...