below par

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Below par

Less than the nominal or face value of a security.

Below Par

Describing a bond that is issued or sold at a price below its face value. For example, a bond with par of $10,000 might be issued to an investor for $7,000. All zero-coupon bonds are issued below par.

below par

Of or relating to a security that sells at less than face value or par value. For example, a $1,000 par bond with a market price of $850 is below par. Likewise, a $100 par preferred stock with a market price of $80 is below par. Fixed-income securities usually trade below par because market rates of interest are higher than they were when the securities were issued. Compare above par. See also discount bond.