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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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What is the amount paid to purchase a bond that will be repaid at maturity?
Par Value
Is a bond's par value not necessarily the same as its market value?
true
When a bond is selling for more than its par value it is selling at a?
Premium
A 1000 par value bond with a conversion price of 40 has a conversion ratio?
25 shares
What does it mean when bonds are issued at a discount?
When a bond is issued at a discount, it is issued for a price less than par (face value). For example, if you were to purchase a bond with a face value of one thousand dollars for nine-hundred and eighty dollars, you bought the bonds at a discount because you purchased it for less than the bond will pay out at maturity. To calculate the 98, you would divide the purchase price by the par value.
What is the amount paid to purchase a bond that will be repaid at maturity?
Par Value
When is a bonds par value repaid?
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.
What is a discount on bonds payable account in accounting?
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.
Is a bond's par value not necessarily the same as its market value?
true
What is the difference between the bond's principal and the bond's par value?
Shaken not stirred.
When the interest rate on a bond and its yield to maturity are equal the bond will trade at par value?
wes
When a bond is selling for more than its par value it is selling at a?
Premium
What is the par value of an asset?
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.
What is a bond that sells at the stated rate considered to have sold for?
The bond that sells at the stated rate is considered to have sold at par value.
A 1000 par value bond with a conversion price of 40 has a conversion ratio?
25 shares
What does it mean when bonds are issued at premium?
The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity.
What does Capital Stock 5000 shares-no par value mean?
Par value, sometimes referred to as maturity value is the face value of a stock certificate or bond and sets the price below which the security will not be issued. In the case of a bond, it is the principle amount that is due at maturity or call. In the case of a company's stock, the par value has no relation to the market value of the security and is typically set at $0.01 or $0.001 for US companies (though they can also issue no par value shares). Federally incorporated Canadian companies by contrast can only issue no par value shares. Provincially incorporated companies can issue shares with a par value which can be helpful in tax planning, estate freezes and unique preferred share issues. So the short answer to your question is that the 5,000, simply denotes how many shares you have, but the "no par value" part is for all intents and purposes irrelevant and only means that the shares were initially created with no par value. It's an aspect of the shares that's really only relevant to the company's accountants.
