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Par Value. Also known as the face value of the bond, the par value is the sum of money that the corporation promises to pay at the bond's expiration. Coupon Rate. The coupon rate is the interest rate of the bond and is also known as the coupon yield.
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31 Αυγ 2024 · Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond. It involves calculating the present value of a bond's expected future coupon payments, or...
25 Φεβ 2023 · Define the par rate and describe the equation for the par rate of a bond. Interpret the relationship between spot, forward, and par rates. Assess the impact of maturity on the price of a bond and the returns generated by bonds.
7 Αυγ 2024 · The par value of a stock or bond is the stated value on the security certificate of the issuer. The par value, a term often used interchangeably with the face value (FV), is the nominal value of a share, bond, or other related securities on their date of issuance.
When the coupon rate of a bond exceeds the YTM, the bond sells at a premium compared to its par value. That is, market demand will push the price of the bond to an amount greater that than its face or par value. We call this kind of bond a premium bond.