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.

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Related Terms

par, at par, below par

'above par ' appears in the definitions of these terms on BusinessDictionary.com




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