Definition: Above Par (Bonds)

By Stock Research Pro • November 23rd, 2009

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.


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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