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Stocks' face value is their original listed value; bonds' face value is what's paid at maturity. Face value affects bond interest (coupon rate); buying undervalued bonds can boost yields. In the ...
Deferred interest bonds pay accrued interest in a lump sum at maturity. Explore their benefits, types, and examples to see if ...
Bonds are a more complex investment than common stocks as their prices are immediately impacted by things like inflation or general interest rates in addition to business performance. This makes bond ...
Par value is the nominal value, or face value, of a security, namely a stock or a bond. When a company authorizes shares, it also sets the par value for shares to be issued, typically an amount ...
If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.
Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...
Savings bonds are a classic, conservative investment often gifted by parents and grandparents to their progeny. But savings bonds have more than sentimental value — they’re also worth real money. At ...