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.

Bond pricing reflects the present value of future coupon payments and principal, discounted at a rate that matches current market yields. Shifts in interest rates, issuer creditworthiness, and ...

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 ...

A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...