Discover how below par bonds work, as they trade for less than their face value. Learn why bonds might trade at a discount due to market and economic conditions.

When a government or corporation issues a bond, it does so with a specific par value and interest rate. Once in the market, those values don’t change; however, the value of a bond can change depending ...

What Is a Deferred Interest Bond? A deferred interest bond, also called a deferred coupon bond, is a debt instrument that pays all of its interest that has accrued in the form of a single payment made ...

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 ...

A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...

Savings bonds, issued by the U.S. Treasury, represent a safe and secure long-term investment. Each bond's value is influenced by its series (E, EE, I, or others), denomination, and issue date. The ...

Baby bonds function similarly to traditional bonds, where investors lend money to the issuer in exchange for periodic interest payments and the eventual return of the face value when the bond matures.

When savings bonds mature depends on the series of bond held. The maturity period for Series I and EE bonds is 30 years, while Series HH bonds mature after 20 years. For example, a Series EE ...