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.

Use above par in a sentence

You should always try and shoot for being above par so that you know you made something for your time.

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In the current market, if my stock portfolio closes above par I will consider this year to be a success.

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Since the interest rates had decreased from issuance, the bond was now above par as the coupon rate was higher.

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