Price, Premium, Discount, and Par

This branch groups the price-versus-face-value vocabulary readers use before comparing yields.

In this section

• Deep Discount And Amortized Premium Or Discount
  Fixed-income terms for deep discounts, shallow discounts, amortizable premiums, and unamortized bond discount or premium balances.
  • Amortizable Bond Premium: Meaning and Accounting Treatment
    Learn what an amortizable bond premium is and why investors and accountants spread a bond premium over the security's remaining life.
  • Deep Discount Bond: Substantially Reduced Market Value Bonds
    A Deep Discount Bond is a bond sold for a discount of more than about 25% from its face value. Unlike Original Issue Discount bonds, these were issued at par value of $1,000, but market forces led to a significant decline in market value.
  • Deeply Discounted Security: Understanding Discounted Investments
    A comprehensive guide on deeply discounted securities, their significance, historical context, types, key events, formulas, and more.
  • Shallow Discount Bond: A Comprehensive Overview
    A Shallow Discount Bond is issued at a price exceeding 90% of its face value, with the discount not exceeding 10%. This article explores its historical context, types, key events, mathematical models, and applicability.
  • Unamortized Bond Discount: Definition, Mechanism, and Impact
    A comprehensive guide to understanding Unamortized Bond Discount, its definition, how it functions in financial terms, and its implications for investors and issuers.
  • Unamortized Bond Premium: Meaning, Calculation, and Examples
    A detailed guide on understanding unamortized bond premiums, how to calculate
• Par, Premium, And Discount Bond Pricing
  Fixed-income terms for par bonds, premium bonds, discount bonds, below-par prices, and bond premiums or discounts.
  • Below Par: Price Below Face Value of a Security
    Understanding the concept of Below Par pricing, especially in the context of bonds, and its implications for investors.
  • Bond Discount: Definition, Examples, Comparison with Premium Bonds
    A comprehensive guide to understanding bond discounts, including definitions, examples, and comparisons with premium bonds.
  • Bond Premium: Meaning and Example
    Learn what a bond premium is and why a bond can trade above face value
  • Discount Bond: Definition, Yield to Maturity Calculation, and Risks
    In-depth exploration of discount bonds, including their definition, how to calculate yield to maturity, associated risks, and practical examples.
  • Par Bond: A Comprehensive Overview
    A detailed look into Par Bonds, their characteristics, implications, and distinctions from other types of bonds.
  • Premium Bond: Meaning and Example
    Learn what a premium bond is and why bonds trade above face value when