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.

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 ...

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 ...

Series EE savings bonds stop earning interest after 30 years. You can cash in a Series EE bond after one year. The method for checking your bond’s value depends on if it is electronic or paper. When ...

If you’re an equity investor, you buy stocks at the current market price and hope they appreciate. For debt investors, it’s the opposite concept. Investors buy bonds based on their face value: the ...

Quick Answer: Perpetual bonds are a type of fixed-income security with no maturity date, meaning the bond issuer is not required to repay the principal amount. Instead, the issuer pays the bondholder ...

Interest Rate Risk Interest rates and bond prices have an inverse relationship - when interest rates rise, bond prices fall, and vice versa. Therefore, if you need to sell your bond before maturity ...

Savings bonds are a classic, conservative investment often gifted by parents and grandparents to their progeny. But savings bonds have more than sentimental value — they’re also worth real money. At ...