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Definition of 'At Par'
A term that refers to a bond, preferred stock or other debt obligation that is trading at its face value. The term "at par" is most commonly used with bonds.
A bond that trades at par will have a yield equal to its coupon, and investors will expect a return equal to the coupon for the risk of lending to the bond issuer. Bonds are quoted at 100 when trading at par.
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Investopedia explains 'At Par'
Due to ever-changing interest rates, financial instruments almost never trade exactly at par. A bond will likely not trade at par when interest rates are above or below its coupon rate.
For example, if a company issues a bond with a 5% coupon and interest rates increase to 10%, investors will pay less than par for the bond to compensate them for the difference in rates. In the same vein, if interest rates drop, investors will be willing to pay more than par for the bond.
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Search results for 'At Par'
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http://stocks.investopedia.com/stock-analysis/2011/Ups-And-Downs-Par-For-The-Course-At-ADM-ADM-BG-CPO-ANDE-CZZ-KO-PEP-GIS1107.aspx
... Article; Comments (0). Ups And Downs Par For The Course At ADM. Posted: Nov 07, 2011 09:45 AM by Stephen D. Simpson, CFA. ...
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http://www.investopedia.com/ask/answers/106.asp
People often get confused when they read about the "par value" for a stock. ... Feedback Feedback. Why would a stock have no par value? ...
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http://stocks.investopedia.com/stock-analysis/2010/4-Companies-That-Should-Have-Sold-Out-PAR-DELL-HPQ-GENZ-MSFT-YHOO-ERTS-TTWO-UTX-DBD-CPWM-PIR0909.aspx
... With news swirling around 3Par's (NYSE:PAR) willingness to sell to either Dell (Nasdaq:DELL) or Hewlett-Packard (NYSE:HPQ), there is the sharp contrast of ...
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http://www.investopedia.com/ask/answers/05/022505.asp
... If the price of the bond falls, does that mean the company won't pay me the par value? When you buy a bond, you are loaning money to the issuer. ...
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http://stocks.investopedia.com/stock-analysis/2010/3Par-Suddenly-A-Hot-Property-PAR-HPQ-DELL-IBM-EMC0824.aspx
... It is almost a little hard to imagine that 3Par's (NYSE:PAR) stock spent the last 18 months more or less languishing. Now it seems ...
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http://stocks.investopedia.com/stock-analysis/2010/Can-Dell-Buy-A-Brighter-Future-DELL-AAPL-PAR-EMC-IBM-HPQ-CSCO0817.aspx
... owners' cash? The Latest Move Dell's latest move is to acquire storage company 3Par (NYSE:PAR) for almost $1.2 billion in cash. At ...
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http://www.investopedia.com/university/bonds/bonds2.asp
... Face Value/Par Value The face value (also known as the par value or principal) is the amount of money a holder will get back once a bond matures. ...
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http://www.investopedia.com/articles/bonds/07/price_yield.asp
... Figure 1. The Dollar Price A bond's dollar price represents a percentage of the bond's principal balance, otherwise known as par value. ...
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http://www.investopedia.com/university/advancedbond/advancedbond2.asp
... Bonds can be priced at a premium, discount, or at par. If the ... half. The coupon rate is the percentage off the bond's par value. As ...
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http://www.investopedia.com/articles/stocks/07/dividend_implications.asp
... Kept Counts.) In the case of a stock dividend, though, the amount removed from retained earnings is added to the equity account, common stock at par value, and ...
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