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.

The term "at par" means at face value. A bond, preferred stock, or other debt instrument may trade at par, below par, or above par. Par value is fixed, while market value changes with credit ratings, ...

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 ...

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 ...

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, ...

Par value is an arbitrary low value assigned to shares to meet legal requirements. To compute par value of issued shares, multiply the number per share by total shares. Low par value reduces financial ...

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 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 ...