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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.

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12y ago

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If a bond is selling more than its face value its selling at a what?

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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".


What is the purchase price of a bond called?

The purchase price of a bond is called the "face value" or "par value" of the bond. This is the amount that the bond issuer agrees to repay the bondholder at maturity.


What is the sale amount of a bond called?

The sale amount of a bond is called the face value or par value of the bond. It is the amount that the bond issuer agrees to repay to the bondholder upon maturity.


How can one determine the face value of a bond?

To determine the face value of a bond, look at the bond certificate or the bond indenture. The face value is the amount that the bond issuer promises to pay back to the bondholder when the bond matures. It is also known as the par value or principal amount of the bond.


What are bonds sold at face value?

Bonds sold at face value, or par value, are issued at their nominal value, which is the amount the issuer agrees to pay the bondholder at maturity. For example, if a bond has a face value of $1,000, it will be sold for $1,000 when issued. Investors typically receive interest payments based on this face value until maturity, when they are repaid the full amount. Selling at face value indicates that the bond is not being sold at a premium or discount relative to its value.


How do you calculate the face value of a bond?

To calculate the face value of a bond, you multiply the bond's par value by its face value percentage. The face value percentage is typically stated as a percentage of the par value, such as 100 or 105. This calculation will give you the amount that the bondholder will receive at maturity.


How to find the face value of a bond?

The face value of a bond can be found by looking at the bond certificate or by checking the bond's prospectus. It is the amount that the bond issuer promises to repay to the bondholder when the bond matures.


Can you provide an explanation of a bond quote and how it is used in the financial markets?

A bond quote is a price at which a bond is bought or sold in the financial markets. It includes information such as the bond's face value, interest rate, and maturity date. Bond quotes help investors assess the value of a bond and make informed decisions about buying or selling it.


How is the interest on a bond calculated?

it is calucated on the face value of the bond


How is interest on a bond calculated?

it is calucated on the face value of the bond