Dollar Price

Bonds are great for investors who want to invest safely, helping municipalities, states, governments, and companies along the way. While you probably won’t get any gains while holding a bond, you will when the bond reaches maturity, at which point you can reap those bond yields.

If you’re bond shopping, oftentimes you’ll be given a bond quote by the yield, which is the annual return you’d get on the bond until it matures. Yet another way investors can be quoted the value of a bond is via the dollar price. The dollar price of a bond is the loan amount of the bond, which is usually referred to as the par value.

To be clear: the par value is not always the same as the price the bond is selling for on the market. For instance, if the par value is more than the price of the bond, that means it’s trading at a discount.

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