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Bond Terminologies

What is the Discounted Price and the Premium Price?

The Bonds are traded at market prices that can vary from par value(par value is the price of the Bond at which the issuer issues it). If the market price is less than par value, it is called Discounted Price, and if the market price is higher than the par value, it is called Premium Price.

The Bonds are traded at market prices that can vary from par value(par value is the price of the Bond at which the issuer issues it). If the market price is less than par value, it is called Discounted Price, and if the market price is higher than the par value, it is called Premium Price.

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