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Par Value
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
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Par Value
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
All bonds have a stated or "par" value, which is the value that the bond will hold after the bond term is completed at maturity (par value is usually $1000 per bond). When a bond is issued at a discount, it means that a company issued the bond for less than the par value (i.e less than $1000). The original discount is calculated as the difference between the par value and the bond sale price, and it is amortized over the life of the bond.
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Shaken not stirred.
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The bond that sells at the stated rate is considered to have sold at par value.
The par value of an asset is the price that was paid for it or the stated price, without consideration of markets pressures.For example, the par value of a US Treasury Bond set at $100,000 and paying 5% interest has a par value of $100,000. The market value may be higher or lower depending on financial market conditions.
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The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity.