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 ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Wanan Yossingkum / Getty Images An unamortized bond ...

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.