above par
Definition
Having a current price above face value. This would generally be the case if the coupon paid on the bond exceeds the discount rate applicable, or if market interest rates fall after the bond is bought. If the bondholder had bought at a price above par, then he/she will suffer a capital loss upon maturity since the bond will only be redeemed at face value.
 Cite this definition
Related Terms
par, at par, below par
'above par
' appears in the definitions of these terms on BusinessDictionary.com
bond classification, at premium, at a premium
Related Research Articles from the InvestorGuide.com University
Treasury BondsLearn about Treasury Bonds, Treasury Notes, CPI-Indexed Treasury Notes (TIPS) and Treasury Bills. Find out about the pros and cons of these kinds of investments. 
Advanced Bond ConceptsLearn about callable and non-callable bonds, zero-coupon bonds, secured and unsecured bonds, tax-deferred bonds, put provisions, and other advanced bond concepts.
Introduction to BondsThis asset class plays an important role in most investors' portfolios, and the basic concepts are important for every investor to know. Here we explain how bonds work, and we describe the different types of bonds, including corporate, municipal, treasury, agency, zero-coupon, and junk bonds.
Related Resources from InvestorGuide.com
Stock of the Day NewsletterLearn about stocks that are making headlines today by signing up for our free newsletter. Stock Research ToolUsing our stock research tool, you have access to our stock tracker, quotes, interactive charts, news, analysis and profile information. Click here to use our stock research tool or enter a stock ticker here: Featured Sponsor
|
