par value
DefinitionThe nominal dollar amount assigned to a security by the issuer. For an equity security, par value is usually a very small amount that bears no relationship to its market price, except for preferred stock, in which case par value is used to calculate dividend payments. For a debt security, par value is the amount repaid to the investor when the bond matures (usually, corporate bonds have a par value of $1000, municipal bonds $5000, and federal bonds $10,000). In the secondary market, a bond's price fluctuates with interest rates. If interest rates are higher than the coupon rate on a bond, the bond will be sold below par value (at a "discount"). If interest rates have fallen, the price will be sold above par value. also called face value or par.
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par value is ...
... part of the Bonds subject.
... part of the Bonds subject.
Related Terms
effective par, full coupon bond, full stock, impaired capital, maturity value, nominal capital, nominal yield, OID, Original Issue Discount, paid-in surplus and
par value appears in the definitions of these other terms on BusinessDictionary.com
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