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.

When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...

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 ...

Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Charlene ...

Most investors reach for a broad, market-value-weighted bond fund to fill the bond portion of their portfolio. While no weighting approach is perfect, market-value weighting often provides the most ...

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 ...

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. The present value (PV) of a bond is the sum of ...