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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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, ...

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’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 ...

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 ...

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 ...

Here are some common methods of measuring the value of an investment. When evaluating which investments to add to or subtract from your portfolio, one factor that might influence your decision is ...

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 ...