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 ...
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 accrued market discount is the expected gain to be earned on a discount bond by holding it up until maturity, whereupon it should rise to its face value. This gives investors potential gains.
J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Khadija ...
Savings bonds, issued by the U.S. Treasury, represent a safe and secure long-term investment. Each bond's value is influenced ...
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 ...
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 ...