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.
Par Value
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.
The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity.
Par value is the standard price of securities such as Stock and Bonds; it has nothing to do with cash valuation. Cash is stated on the financial statements at Nominal Value (i.e., current dollars unadjusted for inflation).
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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.
par value
Stocks are displayed as a value of currency per share, whereas bonds are displayed as a percentage of par value (or face value). Generally, bonds have a face value of $1000, and if the price is reflected as 100.00 that means the bond is currently worth 100% of its face value.
Funding at Par
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.
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.
No, Australian companies do not have a par value (or nominal value) for their shares. The concept of par value was abolished by law in Australia in 1998.