Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia.
Describing a bond or other fixed-income security that sells for a price above its face value. For example, a bond for $20 over its face value is selling above par. Generally speaking, securities sell above par when interest rates have declined and thus new issues of bonds will pay a lower coupon. A bond that sells above par will mature at a price less than what the bondholder paid, but he/she may still make a profit, if one takes coupons into account.
Of or relating to a security that sells at more than face value or par value. For example, a $1,000 par bond that trades at a market price of $1,050 is selling above par. A fixed-income security is most likely to sell above par if market rates of interest have declined since the time the security was issued. Bonds purchased above par will result in capital loss to the buyer if held to maturity and redeemed at face value. Compare below par. See also premium bond.