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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.