Definition: Above Par (Bonds)
Par value or “face value” is the term used to describe the value of a bond at maturity, typically $1,000. Bonds are usually quoted as a percentage of their par value, so a bond trading at 99 is currently trading at $990.
“Above Par” is the terms used when the bond is trading at greater than face value. For example, a bond trading at 101.5 would be trading at $1,015. A bond, like other securities, will trade above its par value when the income distribution it offers is greater than what is currently available in the market.
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The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.
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