You do not say what these are, however, US Savings Bonds are sold for less than the face value, and attain face value when they are fully mature.
Discount A+
You do not say what these are, however, US Savings Bonds are sold for less than the face value, and attain face value when they are fully mature.
It prorated in it's decrease to face value
the face value plus the unamortized premium.
premium
Discount A+
Discount A+
You do not say what these are, however, US Savings Bonds are sold for less than the face value, and attain face value when they are fully mature.
the face value plus the unamortized premium.
It prorated in it's decrease to face value
premium
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.
When bonds are sold for more than face value, the carrying value is equal to the face value plus any premium. The premium is the excess amount paid by the investors over the face value of the bond and is amortized over the life of the bond.
Bonds are typically sold in increments of $1,000, known as the par value or face value of the bond. Investors can purchase bonds in multiples of $1,000 to suit their investment needs.
Bonds for less than there face value.
A bond sold below face value is referred to as a "discount bond." This typically occurs when the bond's coupon rate is lower than current market interest rates, making it less attractive to investors at face value. As a result, the bond is sold at a discount to entice buyers, who will receive the face value upon maturity, resulting in a higher effective yield. An example of this is U.S. Treasury bills, which are often sold at a discount to their face value.
They are sold at discount and mature to face value over time.