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What is it called when a bond is selling for less than its face value?
Wiki User
∙ 11y ago
A bond selling for less than its face value is classified as being sold at a discount. A bond can sell at a discount if interest rates increase or if the repayment ability of the bond issuer becomes questionable due to a reduction in the credit rating of the issuer.
Wiki User
∙ 11y ago
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If a bond is selling more than its face value its selling at a what?
Premium.
When a bond is selling for more than its face value it's selling at a?
If a bond's price is greater than its Face Value, it is said to be "in premium" e.g. if the price is 105 with a FV of only 100. If the market price is below the Face Value, it is said to be "in discount" while should the market price equal the FV, the bond is said to be "at par".
What is a Zero coupon bond?
A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond.
What If a bond selling at a premium?
One or more of the following market conditions may explain why a bond is selling at a premium (to face value): * Interest rates went down (causing value to go up) * The credit rating for the company issuing the stock went up * The company issuing the bonds has offered to buy outstanding debt at a premium * If convertible bond (to stock), the underlying stock went above a critical value making the bond more valuable when converted
What is the name of the monetary value that is printed on the front of the bond?
face value
If a bond is selling more than its face value its selling at a what?
Premium.
What is the amount printed on a bond is called?
Amount printed on the face of bond is called "Face value of bond".
When a bond is selling for more than its face value it's selling at a?
If a bond's price is greater than its Face Value, it is said to be "in premium" e.g. if the price is 105 with a FV of only 100. If the market price is below the Face Value, it is said to be "in discount" while should the market price equal the FV, the bond is said to be "at par".
How is interest on a bond calculated?
it is calucated on the face value of the bond
How is the interest on a bond calculated?
it is calucated on the face value of the bond
How are interest on a bond calculated?
Know the bond's face value, then, find the bond's coupon interest rate at the time the bond was issued or bought, then, multiply the bond's face value by the coupon interest rate it had when issued, then, know when your bond's interest payments are made, finally, multiply the product of the bond's face value and interest rate by the number of months in between payments.
What is a Zero coupon bond?
A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond.
What is market rate of bond?
Market rate of bond is that rate at which that bond will be sale in market and it is different from face value of bond as well as book value of bond.
What is face value?
the value printed on the face of a stock,bond or other financial instrument or document
What is the name of the monetary value that is printed on the front of the bond?
face value
Are interest rates on government bonds usually calculated on the face value of the bond?
The interest earned on government bonds is calculated on the face value of the bond plus the interest that has been earned on the bond.
What If a bond selling at a premium?
One or more of the following market conditions may explain why a bond is selling at a premium (to face value): * Interest rates went down (causing value to go up) * The credit rating for the company issuing the stock went up * The company issuing the bonds has offered to buy outstanding debt at a premium * If convertible bond (to stock), the underlying stock went above a critical value making the bond more valuable when converted
